Beware of cryptocurrency scams

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SIOUX FALLS, S.D. (KELO) – Cryptocurrency has been growing in popularity since Bitcoin was made public in 2009. Now the digital money is also being used to scam people.

Cryptocurrency is a legitimate form of investment, however, scammers are now using it as another avenue for crime.

Arica Kulm is the Director of Digital Forensics Services at DSU and says the scams take various forms, but a popular one is the romance scam.

“They’ll get to know them, they’ll become friends and it turns into romance and then pretty soon it’s, ‘hey, I have an opportunity for you,’” Kulm said. “They’ll get them to invest in their cryptocurrency, except the site they send them is not a legitimate site. Pretty soon they’ve invested more and more money and then when they go to withdraw that money, they have to pay a tax or it’s not really there or something has happened to their money. Well, it’s gone and they can’t get it back.”

South Dakota Attorney General Marty Jackley wants consumers to be aware of these scams.

“Obviously, crypto is being used more and more,” Jackley said. “There’s not a national protection on crypto; the government doesn’t back crypto and we don’t have a central bank addressing that. So there are a few more opportunities for scam artists to utilize crypto or just the concept of crypto on the investment side.”

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Like any scam, be careful with who you send your money to.

“If you want to invest in crypto, go to a reputable site and make sure you’re doing it on your own,” Kulm said. “No one should be asking for payment in cryptocurrency unless you are asking to do that yourself. There are sites out there where you can pay for things in cryptocurrency but you should be seeking that out on your own. No one should ask you for that.”

Kulm says other crypto scams they’ve seen is people getting a call asking them to pay a warrant in cryptocurrency.

“That would be something you would never have to do,” Kulm said. “”That would be something you would never have to do,” Kulm said. “So if you get those calls, they’re always a scam.”

Another scam takes the form of tech support with a fake online pop-up promising to help with an issue or virus.

“It takes different forms, sometimes they’ll ask for payment from your checking account and then they’ll claim that there’s an overpayment,” Kulm said. “They end up getting you to give them money either in gift cards or cryptocurrency.”

If you are a victim of a scam, it’s important to report it.

“You’re not alone, you’re not the only one,” Kulm said. “And the only way to help is to report it because you might be helping the next person not fall for that.”

For questions about scams or to report a scam you can call the State Consumer Protection Division at 1-800-300-1986.

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