WITH CRYPTOCURRENCY IT IS EVEN
HARDER TO TRACE.
IN INSIDE TRACK PLUS THE RED
FLAGS YOU CAN'T AFFORD TO
IGNORE.
>> Reporter: CRYPTOCURRENCY
MAKING A BIG SPLASH FROM
CELEBRITY ADS TO BULLISH
INVESTORS.
THERE ARE MORE THAN 17,000
DIFFERENT TYPES OF CRYPTO ON THE
MARKET WITH AN ESTIMATED VALUE
OVER $2 TRILLION.
WHILE CRYPTO HAS HELPED MANY
INVESTORS MAKE MONEY, HOMELAND
SECURITY SAYS THE DIGITAL
CURRENCY IS ALSO ATTRACTING
SCAMMERS WHO RELY ON ROMANCE TO
ATTRACT THEIR TARGETS.
>> I WAS LOOKING FOR, YOU KNOW,
SOMEONE TO HAVE SOME FUN WITH.
LET'S GO HIKING.
LET'S GO HAVE DINNER.
>> Reporter: MIKE WHO ASKED US
NOT TO REVEAL HIS LAST NAME IS
RETIRED AND SINGLE.
HE WENT ON TINDER TO FIND
COMPANIONSHIP BUT SAYS HE WAS
SWINDLED THROUGH A SOPHISTICATED
CRYPTO INVESTMENT SCHEME.
HOW MUCH MONEY DID YOU LOSE TO
THIS SCAM?
>> ABOUT $277,000?
>> THAT MONEY IS GONE?
>> YES.
>> IT STARTED IN JULY WHEN HE
CONNECTED WITH SOMEONE NAMED
JENNY FROM MALAYSIA.
SHE QUICK ASKED HIM TO LEAVE
TINDER AND TALK ABOUT WHATSAPP,
INITIALLY BB&TABOUT VISITING AND
MEETING IN PERSON BUT THEN THE
CONVERSATION TURNED TO MONEY.
>> HER UNCLE WAS THE EXPERT IN
BITCOIN.
>> Reporter: JENNY PERSUADED HIM
TO INVEST $5,000 WITH A
LEGITIMATE CRYPTO SITE BUT SAYS
SHE THEN ENCOURAGED HIM TO MOVE
TO IT A DIFFERENT PLATFORM.
AND SENT HIM TO A WEBSITE HE
COULD SEE THE INVESTMENT
GROWING.
>> I JUST MADE 5,000 DOLLARS AND
GOT ME EXCITED AND SAID YOU GOT
TO KEEP INVESTING.
>> Reporter: FOUR MONTHS LATER,
MIKE REALIZED THE PROFITS
WEREN'T REAL.
THIS EXACT SCAM IS BECOMING MORE
COMMON ACCORDING TO DIRECTOR OF
FRAUD VICTIM SUPPORT AT AARP.
>> YOU WILL SEE EARNING AND EVEN
BE ABLE TO WITHDRAWAL SOME MONEY
AT SOME POINT BUT THEN WHEN YOU
WANT TO WITHDRAWAL THE WHOLE
BALANCE THAT IS WHEN YOU REALIZE
YOU HAVE BEEN A VICTIM.
THEY SAY THERE IS A PENALTY OR
FEE AND IT IS IN THE HUNDREDS OR
THOUSANDS OF DOLLAR.
>> THE LURE OF LOVE PLUS CRYPTO
IS A MATCH MADE IN SCAM HEAVEN.
>> LAST YEAR WE GOT ONE OR TWO
COMPLAINTS A WEEK.
RIGHT NOW WE'RE PROBABLY GETTING
2-3 COMPLAINTS A DAY.
IF YOU THINK IT WILL NEVER
HAPPEN TO YOU.
YOU ARE WRONG.
IT CAN AND IT WILL.
>> Reporter: AND IT ISN'T JUST
ROMANCE.
PLENTY OF SCAMMERS ARE PREYING
ON THE CRYPTO CRAZE.
>> PEOPLE THINK THEY CAN
IMMEDIATELY TAKE A THOUSAND
DOLLARS AND TURN IT INTO A
MILLION DOLLARS.
>> Reporter: ACTOR DIRECTOR OF
THE NEW YORK OFFICE OF CYBER
CRIME, WHO ARE THE PEOPLE MOST
COMMONLY TARGETED?
>> IT RUNS IF FULL GAMUT.
CONSTANT REACHING OUT.
EVERY AVENUE THEY ARE TRYING TO
EXPLOIT.
>> Reporter: HE SAYS
CRYPTOCURRENCY IS QUICK BECOMING
PREFERRED METHOD OF PAYMENT FOR
TRADITIONAL SCAMS LIKE PHISHING
WHERE SOMEONE SENDS A TEXT,
E-MAIL OR PHONE CALL DEMANDING
PAYMENT FOR EVERYTHING INTEREST
TAXES TO INSURANCE.
BEWARE OF BUSINESS COMPROMISE
SCAMS TOO.
WHEN YOU GET A MESSAGE THAT
LOOKS LIKE IT IS COMING FROM A
LEGITIMATE BUSINESS OR EVEN YOUR
BANK.
NEVER SEND PAYMENT AND ALWAYS
CONTACT THE BUSINESS DIRECTLY.
>> ONCE YOU SEND THAT MONEY, IT
IS VERY MUCH DIFFICULT TO GET IT
BACK.
>> CORRECT.
ONCE YOU SEND THAT MONEY, GOES
TO EXCHANGES, IT IS ALMOST
IMPOSSIBLE TO GET IT BACK.
>> Reporter: AND PEOPLE ARE
LOSING BIG MONEY TO CRYPTO
SCAMS.
LAST YEAR CREDIT CARD PAYMENTS
TO FRAUDSTERS.
AND CRYPTO SCAMMERS SIX TIMES AS
HIGH, 294 MILLION.
MIKE DOUBTS HE'LL EVER RECOVER
HIS $277,000.
NOW SHARING HIS STORY AS A
WARNING.
HIS MESSAGE TO THE SCAMMERS?
>> I WANT THEM TO SPEND THEIR
LIVES IN PRISON.
>> Reporter: MIKE DID REPORT HIS
CASE TO AARP, THE FTC, FBI AND
HOMELAND SECURITY.
BUT HE'S NOT HOLDING OUT HOPE
HE'S GOING TO GET THAT MONEY
BACK.
BY THE WAY ANOTHER RED FLAG YOU
WANT TO WATCH FOR.
ANY TIME SOMEONE ASKS YOU TO
MAKE A CRYPTO DEPOSIT AT AN ATM
AND THOSE ARE POPPING UP ALL
OVER THE PLACE, GROCERY STORES
AND GAS STATIONS.
AND ONE MORE THING.
NO REPRESENTABLE GOVERNMENT
AGENCY OR LEGITIMATE BUSINESS IS
GOING TO ASK YOU TO MAKE A
PAYMENT USING JUST CRYPTO.
THEY SHOULD HAVE OTHER OPTIONS
SO THAT IS ANOTHER RED FLAG.
>> SAD AND SCARY.
>> AND A LOT OF MONEY.