KCPD’s Economic Crimes Section is experiencing an increase in cases involving cryptocurrency.
Victims of all ages and demographics are reporting losses of their cryptocurrency from a variety of scams. Criminals are increasingly successful in their attempts to victims. Criminals have discovered methods to bypass two-factor authentication to access the victim’s software wallet, where they transfer the victim’s funds to accounts controlled by the criminal.
Investigators say that most of these criminals are overseas and believe this crime will increase as more people become involved in cryptocurrency.
“It’s the wild, wild west out there,” says Detective Leland Blank of the Economic Crimes Section. Blank says that when one scam gets thwarted, criminals move on to a different one.
Blank, who partners with the FBI, offers advice if you decide to invest in cryptocurrency.
Do not brag about it. Many people are on social media, either asking questions or boasting about gains, only to be targeted by criminals.
Use an email account designated for cryptocurrency only.
Actively monitor your accounts.
While they also have weaknesses, hardware wallets may be slightly more secure than software wallets. If you’re going to use a hardware wallet to store cryptocurrency, use one with multi-factor authentication.