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The FBI issues warning as crypto job scams and labor trafficking surge

TL;DR

  • The FBI alerts on crypto job scams tied to labor trafficking in Asia.
  • Coerced victims participate in cryptocurrency fraud; nine illicit exchange services recently shut down.
  • The FBI advises caution and vigilance when assessing cryptocurrency-related job offers.

The U.S. Federal Bureau of Investigation (FBI) has recently expressed deep concern over a new cryptocurrency job scam circulating among U.S. citizens and those residing or traveling abroad. The fraud, audaciously linked to labor trafficking, has raised the specter of a disturbing trend in the crypto job market.

The FBI’s warning, issued on May 22, comes after multiple instances where victims have been coerced into participating in international cryptocurrency investment fraud schemes. Disturbingly, some individuals have been held against their will and forced to commit these fraudulent acts.

Pseudo job ads: A sinister facade

The scam begins innocuously, with criminals exploiting the internet’s anonymity to peddle false job advertisements, targeting primarily those in Asia. These fraudulent job advertisements offer seemingly legitimate opportunities across various sectors, including tech support, customer service, and beauty salon technicians.

However, this is merely a sinister facade. Once these unsuspecting individuals arrive in a foreign country, they become entrapped, manipulated, and coerced into committing cryptocurrency investment scams. Using a disturbing mix of intimidation, confiscation of travel documents, and in some instances, actual physical harm, these criminals exert a vice-like grip over their victims.

In the wake of this alarming revelation, the FBI urges victims of such schemes to report incidents through a dedicated online portal. By doing so, victims can assist law enforcement agencies in their crucial efforts to dismantle these illicit networks.

A closer look at the rising tide of crypto scams

This disquieting scam throws light on the rising tide of crypto scams, casting a long shadow over the broader crypto community. Recently, crypto security and auditing firm CertiK released a comprehensive report revealing losses of $103.7 million due to crypto exploits and scams in April alone – a staggering figure equal to half of all crypto exploited in 2023.

The FBI’s role in combating cryptocurrency scams is becoming increasingly prominent. A significant development occurred on May 1, when the Detroit field office of the FBI, in collaboration with the National Police of Ukraine, conducted a coordinated operation that resulted in the seizure and shutting down of nine digital currency exchange services. These domains were allegedly facilitating cybercriminals and had become notorious for their activities.

While the FBI continues to wage war against crypto scams, it provides practical advice to help individuals identify fraudulent job offers. These include caution against unsolicited job offers related to cryptocurrency, being wary of poorly written job postings, being careful not to share sensitive information, and skepticism towards offers that seem too good to be true.

As the cryptocurrency market expands, the risk of scams rises. This latest warning from the FBI serves as a potent reminder of the potential perils that lurk within the crypto job market.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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