Scammers Use Couriers to Collect Cash in Cryptocurrency Investment Scams

How the Scam Works

Step 1: Victims are Encouraged to Invest in Cryptocurrency

Scammers employ a ruse to entice communication with potential victims by posing as persons seeking business or romantic relationships through online social media networking platforms, unsolicited texts, or by creating a public persona of a cryptocurrency investment expert. After establishing a relationship with the victim, the scammer suggests investing in cryptocurrency and instructs the victim to download specific cryptocurrency trading applications and create investment accounts. The victims are encouraged to begin investing by sending wire transfers to various domestic and international bank accounts, which the victim believes are deposit accounts for investment platforms recommended by the scammer. Victims are provided access to websites showing fictitious returns on their investment, which encourages them to invest additional funds in the scheme.¹

Step 2: Scammers Direct Victims to Obtain and Send Cash

Legitimate financial institutions may deny suspicious funds transfers by victims, so scammers inform victims in-person cash pickups are required to continue investing with the fraudulent investment firm or to pay purported fines to withdraw their investments. Alternatively, the fraudulent cryptocurrency exchange may inform victims their account has been "flagged," allowing the scammer to suggest the use of cash couriers as an alternative.

Step 3: Scammers Use Couriers to Retrieve Cash from Victims

Once victims obtain cash and inform the primary scammer they have the funds, the scammer arranges to send couriers to retrieve the cash at victims' homes or public locations. Scammers provide victims with a U.S. dollar bill serial number or another form of code/password. When the courier arrives, they show the victim the dollar bill or provide the agreed-upon password to authenticate the courier's affiliation with the scammer. Once the cash pickup occurs and the courier departs, victims can see an increase in deposits in their virtual wallet displayed on their account with the scammer's investment platform. When the victim attempts to withdraw their perceived profits, scammers will begin the loop over by forcing the victim to pay fraudulent taxes and penalties, again using couriers for cash pickups to perpetrate the fraud.

Tips to Protect Yourself

• Protect your personal information, including banking information. Don't disclose your home address or agree to meet with unknown individuals to deliver cash or other valuables as part of investment activities.
• Do not continue with unsolicited communications with an unknown person. Cease communication after identifying the wrong number.
• Be suspicious of unsolicited communication and contact with strangers; verify the identity of the person through third parties.
• Beware of "love bombing," a social manipulation technique employed by online scammers and other malicious actors wherein a victim is quickly showered with praise, attention, and manipulated to feel trust and intimacy with a person prior to having their lowered guard exploited by a scam or other malicious behavior.
• Do not click on unsolicited pop-up messages on your computer, or open links/attachments sent via unsolicited text messages or email. Do not contact telephone numbers provided in pop-ups, texts, or emails without verifying first.
• Prior to investing in any cryptocurrency trading platform, look online for any articles, forums, or reviews which may indicate the platform is a scam. Search more than the name: search the URL, any identifying information on the webpages, screenshots of the "app," etc.

Report It

If you or someone you know has fallen victim to this or another scam, file a complaint with the IC3 at www.ic3.gov. Be sure to include any available information including:

• The name of the person or company that contacted you.
• Methods of communication used, including websites, applications, emails, telephone numbers, and any profile names associated with those platforms.
• Any bank account number(s) and cryptocurrency wallets to which you were directed to send funds and the recipient's name(s).
• If possible, include screenshots of texts, messages, and provide information for any mobile application pertinent to the scam.

Victims aged 60 or over who need assistance filing an IC3 complaint can contact the DOJ Elder Justice Hotline, 1-833-FRAUD-11 (or 833-372-8311).