This week, state Attorney General Ashley Moody issued a Consumer Alert about a cryptocurrency scam targeting Floridians through Facebook, Instagram and other social media platforms.
The bait-and-switch investing scheme hooks targets by first helping them earn profits, then encouraging the targets to transfer funds to a fraudulent trading platform where the money is stolen. The Florida Attorney General’s Office has received nearly 100 complaints regarding these types of scams, with a major uptick during the last month.
“The allure of quick profits has drawn millions to cryptocurrency trading—with many new investors joining the market daily. Where there is opportunity though, there are also scammers—baiting victims with early success, then prompting them to transfer their profits to fraudulent trading platforms. We are seeing an uptick in reports of cryptocurrency bait-and-switch scams, and I want Floridians to know how to avoid falling prey,” Moody said.
According to the complaints received, once a victim clicks on an advertisement enticing investments in a cryptocurrency website, the victim is prompted to establish an account with a legitimate cryptocurrency exchange. Afterward, victims are directed to transfer earnings to other cryptocurrency websites that are fraudulent, imposter platforms. These fraudulent websites may only operate for a short time and then victims are blocked from signing in to investment…