U.S. Secret Service Releases Data on Cryptocurrency Fraud for the First Time – Warning Issued

The United States Secret Service is ramping up its global crackdown on cryptocurrency scams that have proliferated around the world. The efforts center on sophisticated fraudulent schemes that trick victims into paying small profits and then losing their fortunes through fake investment platforms.

The Secret Service’s Global Investigative Operations Center (GIOC) has seized nearly $400 million worth of digital assets over the past decade, a figure that has not been previously made public. The team uses software, subpoenas and patience to track down digital crimes, not guns or badges.

“They send you a photo of a young person, but in reality it’s probably an old man in Russia,” GIOC analyst Jamie Lam told a meeting in Bermuda last month, explaining how the scams start: “They send you a photo of someone who looks like they’re a young person, but in reality it’s probably an old man in Russia.” Fake investment sites offer victims small profits, then disappear as investments grow.

The team can track down the criminals by tracking down the domains of fake platforms, crypto wallets, and sometimes IP addresses leaked through VPN errors. “Sometimes it just takes patience,” Lam says.

“Victims often think they see opportunity. They think they’re safe when they use Bitcoin, but that’s not true,” Smith said during training in Bermuda. Bermuda Governor Andrew Murdoch warned: “Technology is great for economic growth, but it’s also open to abuse. You have to have strong investigative powers.”

According to FBI data, of the $16.6 billion in total internet crime reported in the US in 2024, $9.3 billion was related to crypto. The elderly suffered the most losses, losing $2.8 billion to fake investment sites alone.

The Secret Service is working closely with industry partners to recover stolen funds. Coinbase and Tether have assisted with wallet analysis and asset freezes in some cases. One scam in which $225 million in USDT was recovered was among the largest recoveries ever.

*This is not investment advice.

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