Cryptocurrency and crime.
It's tonight's topic in a week
long series about cryptocurrency.
We've asked experts how does it work?
How do we even invest in it?
How could it be harming the environment
or contributing to renewable energy?
And then how can it help with equity?
But tonight we're talking about crime,
and like many neutral tools that
can be used for good and it
can be used for harmful ways.
I went to the FBI field office in
Roseville to speak directly with
special agents about how criminals use.
Cryptocurrency and how we can protect
ourselves from becoming victims.
So start with the basics.
How and why is cryptocurrency
used in crimes? Cryptocurrency
we're seeing more and more often
used in crimes nowadays as it's
becoming more and more common.
It's used in the sense of it's
just another form of currency.
People are using it to pay ransoms,
to use an investment schemes and fraud.
And it's being used a lot of
the time because it's quick,
it's less regulated, it's easier
for people to send that anonymously.
So as the technology evolves.
We will evolve in our
investigations along with it.
You know, you can't just use
crypto and get away with it.
Yeah, yeah.
This is really the new way forward when it
comes to technology and future applications.
And unfortunately it's being misused by
some people to commit crimes here in the US.
There's nothing illegal about
Bitcoin or cryptocurrency itself.
It's inherently just technology.
It's in the way people misuse it.
Now in the US,
it's not recognized as Fiat or legal tender,
but if someone were to invest in it,
even legitimately.
It can still be taxable if
they profit from it.
Some countries, however,
outlawed altogether and other countries
even recognize it as legal property.
So it it really varies quite
a bit around the world because
cryptocurrencies haven't been
around for much more than a decade.
What are the components of a
crime involving cryptocurrency?
We work on a cyber squad,
so both of us have actually
seen the use of cryptocurrency
and what's called ransomware,
when people essentially hijack your data
and encrypt it so that you can't use it,
whether it's on a.
Server or whether it's on your personal
computer and then a note is sent
and an offer is provided so that the
criminal will decrypt the files for you,
allegedly provided that you send funds
to their cryptocurrency address.
Another type of crime that I've seen
has been investment fraud schemes.
People are excited about cryptocurrency.
They're hearing that people are
making a lot of money on it.
They're hearing that it's a really good place
to invest and they want to get in on it.
But it's confusing.
People don't know where
to go and how to do it,
and they may get caught up
in something that is not.
Legitimate someone messages them on,
on Facebook, on WhatsApp, saying,
hey, I heard you want to invest,
here's how you do it,
and they'll get them to just basically
just send the money to someone else.
You'll just send the funds,
it'll go overseas and you'll
never see that money back again.
Have any specific steps or advice that you
have for people to ward off such attacks?
For those investing in cryptocurrency, one
of the biggest things we can say
is to use a reputable exchange.
Or don't just go online and find one
that has the cheapest fees because
it may not be a legitimate service.
So really, do your research.
Anyone who says guarantee returns
you're going to make money,
that is almost definitely a scam
because cryptocurrency is such a
volatile market that anyone who
guarantees that is running a scam.
So you want to stay away from
anything like that.
The more common it becomes,
the more people that are going to take
advantage of that misplaced excitement.
We've even seen instances of where someone
that's not even interested in crypto,
but is victimized and manipulated.
Whether it was one of the romance
fraud schemes that we've seen,
the criminals will actually ask
them to open up an exchange.
Account and move the funds in
that manner because they're more
anonymous and a little less regulated.
There's a whole another segment of
the population that is going to be
taking advantage of just using it as
a vehicle to move those illicit funds.
We've already seen internal stats that
are showing not just the number of victims,
but the amounts of money that are
being stolen in this way are going up.
It's in the billions.
You know what really stuck out to me after
talking with them was how whether you're
someone who's interested in cryptocurrency
or you have no interest at all,
fraudsters can get at all of us.
And I don't say that to scare you.
I just say that to maybe as
we head into the weekend,
nudge you to maybe change a few passwords.
That's the advice from the FBI.
Change passwords.
Turn on 2 factor authentication where you
get that text when you try to log in.
I know it takes a few extra steps,
but they say it really does make
a difference in protecting you.
And look, we all like to think we're immune
to the deception of fraudsters, right?
But the truth is.
Lots of people fall prey to it everyday.
Criminals are just becoming more
savvy at capturing our attention
and earning our trust or fooling us.
So if you or someone you know
have been victimized,
the FBI does ask you to
come forward and report it.
That helps them solve these crimes.
We have a link to where you can do
that on abc10.com slash to the point.