Scams exploiting digital currencies have become increasingly sophisticated, with many targeting seniors through Bitcoin ATMs, deepfake impersonations, and fake investment schemes resulting in billions in reported losses and growing concern among US regulators and law enforcement agencies under security shield crypto.
According to the FBI, crypto thief activity and scams caused a staggering $9.3 billion in losses in 2024, with $5.8 billion tied specifically to investment fraud.
“Individuals over the age of 60 were the most affected, with roughly $2.8 billion in losses,” said Matthew R. Galeotti of the US Department of Justice.
Experts warn that limited regulation, anonymity, and the irreversible nature of crypto transactions make it impossible for victims to recover stolen funds, raising serious concerns about investor protection in crypto.
Cryptocurrency Phishing Scams
Phishing scams, once limited to fake banking emails, have evolved into cryptocurrency phishing campaigns that target unsuspecting crypto users directly. Fraudsters now pose as customer service agents, government officials, or even trusted relatives, asking victims to share wallet credentials or transfer funds.
AI tools have worsened the problem of security shield crypto, with scammers using “AI-enhanced tools to clone familiar, trusted faces and voices of celebrities, and even people you know,” experts warn.
These frauds often escalate into a cryptocurrency phishing attack, using fake pop-ups claiming your device has been hacked. That’s how Maryland retiree Diane Reynolds was tricked into depositing $13,100 into a Bitcoin ATM after a scammer claimed hackers accessed her bank account.
“There was a voice message that said, ‘Don’t turn your computer on, don’t turn your computer off,’” Reynolds told CBS News.
Such incidents have prompted Washington, D.C. Attorney General Brian Schwalb to file a lawsuit against Athena Bitcoin, accusing the company of not preventing the impersonation crypto scams at its kiosks.
“Bitcoin ATMs are a tool that scammers are using to separate people from their hard-earned money,” Schwalb said, alleging that Athena charged undisclosed fees as high as 26% while 93% of transactions were linked to scams.
The Federal Trade Commission (FTC) notes that fraudsters prefer Bitcoin ATMs because transactions are untraceable and irreversible. Victims often think they’re securing their money when, in fact, they’re handing it over to criminals. For many, secure cryptocurrency storage remains the best defense against such thefts, especially as decentralized finance (DeFi) risks continue to grow.
How to Recover Crypto from a Scammer?
Unfortunately, recovering from lost security shield crypto is extremely difficult. Unlike traditional banking, crypto lacks the consumer safeguards that allow chargebacks or reversals. Once coins are sent to a scammer’s wallet, they’re impossible to retrieve, making crypto scam recovery a growing industry.
However, victims should act fast by reporting the incident to the Federal Trade Commission (ReportFraud.ftc.gov), the FBI’s Internet Crime Complaint Center (IC3.gov), and the Consumer Financial Protection Bureau (CFPB). Reporting helps trace funds and prevents others from being victimized.
The FTC advises, “If someone requires you to pay in crypto—or gift cards or via wire transfer—it’s a scam.” Some crypto scam recovery companies and digital forensics experts specialize in tracing blockchain transactions to aid scammed crypto recovery, though success rates vary.
Experts emphasize vigilance as the best form of crypto scams recovery, urging users to secure their wallets, verify sources, and avoid unsolicited requests for payments.
Reynolds, now an advocate for scam awareness, urges others to be vigilant: “Be aware. This is real.”
As the unregulated world of cryptocurrency continues to expand, education and skepticism remain the strongest defenses. When in doubt, remember—if an opportunity seems too good to be true, it probably is.
Inside Telecom provides you with an extensive list of content covering all aspects of the Tech industry. Keep an eye on our Cryptocurrency section to stay informed and updated with our daily articles.