Cryptocurrency is difficult to trace, making it “very rare and very hard” for detectives to get it back, according to Scott Dietrich with the sheriff’s office.
KENT COUNTY, Mich. — A rise in cryptocurrency scams in Kent County is prompting law enforcement to share a warning and red flags to watch for.
Crypto ATMs, like Bitcoin, Coinflip, and LibertyX, allow you to make cryptocurrency transactions. This can include exchanging cash for cryptocurrency.
There are hundreds of these ATMs in West Michigan.
Scott Dietrich, public information officer for the Kent County Sheriff’s Office, said 75% of fraud investigations in the county are now related to cryptocurrency scams.
Scammers are using crypto, Dietrich said, because it is very difficult to track. Because cryptocurrencies are not associated with a bank, the money could be transferred anywhere in the world.
“The reason that [scammers are] doing this is because it’s pretty untraceable and it’s very instant, and with the availabilities of these ATMs, people can insert cash into it, which is a direct transfer, makes it very quick,” he said.
While the scams vary, Dietrich described a scenario where a scammer tells someone that their money is compromised in their bank account. The scammer may tell them to take money out of their account and deposit it at a crypto ATM.
The money can then be stolen and is virtually unable to be traced—making it “very rare and very hard” for detectives to get it back, Dietrich said.
“So big red flags to look out for is if someone offers you money, but you have to pay a small fee to get that money—that’s a scam, and it always will be,” he said. “If they are being very demanding on the phone, telling you ‘Don’t hang up. Don’t talk to anybody else. People are going to try to talk you out of it. Don’t let them,’ that’s a huge red flag that people should look out for.”
While anyone could fall victim to these scams, Dietrich said the main target for a cryptocurrency scam will be in their 40s or 50s and more likely to have a stable job and cash on hand.
The FBI estimates $65 billion a year is stolen through cryptocurrency scams.
“As much as we can tell people, you know, ‘Watch out for this scam, watch out for this scam,’ there’s so many that revolve and they’re using different ones every week, it seems,” Dietrich said.
If you fall victim to a cryptocurrency scam, you should let law enforcement know immediately. They may not be able to get your money back, but Dietrich said it is likelier when detectives can begin investigating quickly.
You can call the Kent County Sheriff’s Office at 616-632-6100 to report a scam.