FBI Seizes $112m From 'CryptoRom' Criminals

The US Department of Justice (DoJ) has seized six crypto currency wallets believed to have been used to launder the proceeds of investment fraud scams of virtual currency worth an estimated $112m (£90m) linked to crypto-currency investment scams.

Scammers have been using accounts to launder funds acquired via crypto-currency confidence scams, called “CryptoRom”.

The schemes involve fraudsters cultivating long-term relationships with victims online to coax them to make crypto-currency investments. The catch is that the transferred funds end up in the swindler’s pockets while the victim is abandoned.

Judges in Arizona, California and Idaho authorised seizure warrants for six virtual currency accounts that prosecutors say were used to launder proceeds of the various frauds after they were socially engineered into investing their savings in dodgy digicash schemes. “According to court documents, the virtual currency accounts were allegedly used to launder proceeds of various crypto-currency confidence scams. In these schemes, fraudsters cultivate long-term relationships with victims met online, eventually enticing them to make investments in fraudulent crypto-currency trading platforms.

“In reality, however, the funds sent by victims for these purported investments were instead funneled to crypto-currency addresses and accounts controlled by scammers and their co-conspirators,” says  the US Department of Justice news.

"In this case, the FBI Phoenix Division has identified at least 69 victims with an estimated loss of at least $33.9 million related to these various fraudulent investment platforms," according to the California court document.

The scheme often involves faking a romantic interest in the victim, earning the scheme the title of “crypto-currency romance” or “CryptoRom.

“These particularly vicious frauds, where scammers carefully cultivate relationships with their victims over time, have devastated families and cost individuals their life savings,” Assistant Attorney General Kenneth Polite said.

The hacking scam criminals create a relationship with their victims over a number of months and gradually scammers introduce the idea of trading in crypto. Initial “investments” are often small, so as not to spook the victim. The criminals later connect the victim to a fake investment website, promising profitable returns and then the money invested goes directly into the pockets of these cyber criminals.

Only when the victim decides to withdraw a big sum do they realize the whole thing is a scam. Often they’ll be told to pay an exit fee or taxes to gain access to their accounts, which also goes to the scammers. According to the FBI’s Internet Crimes Complaint Center, investment fraud is the most common scam, totaling $3.31 billion in losses in 2022, a 183% increase from 2021.

US Dept. of Justice:     I-HLS:     The Regsister:    Cybernews   International-Adviser:    Infosecurity Magazine:

You Might Also Read:

$3 Million Romance Fraudster Arrested:

___________________________________________________________________________________________

If you like this website and use the comprehensive 6,500-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.

  • Individual £5 per month or £50 per year. Sign Up
  • Multi-User, Corporate & Library Accounts Available on Request

Cyber Security Intelligence: Captured Organised & Accessible


 

« Japan’s Leading Companies Exposed To Ransomware
Attack On Israel’s Water Systems »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

DigitalStakeout

DigitalStakeout

DigitalStakeout enables cyber security professionals to reduce cyber risk to their organization with proactive security solutions, providing immediate improvement in security posture and ROI.

NordLayer

NordLayer

NordLayer is an adaptive network access security solution for modern businesses — from the world’s most trusted cybersecurity brand, Nord Security. 

MIRACL

MIRACL

MIRACL provides the world’s only single step Multi-Factor Authentication (MFA) which can replace passwords on 100% of mobiles, desktops or even Smart TVs.

IT Governance

IT Governance

IT Governance is a leading global provider of information security solutions. Download our free guide and find out how ISO 27001 can help protect your organisation's information.

Perimeter 81 / How to Select the Right ZTNA Solution

Perimeter 81 / How to Select the Right ZTNA Solution

Gartner insights into How to Select the Right ZTNA offering. Download this FREE report for a limited time only.

Phoenix TS

Phoenix TS

Phoenix TS offers world-class management, computer, and IT security certification training courses.

Military Cyber Professionals Association (MCPA)

Military Cyber Professionals Association (MCPA)

MCPA are a team of Soldiers, Sailors, Airmen, Marines, Veterans and others interested in the development of the American military cyber profession.

Certus Software

Certus Software

Our Secure Data Erasure solutions protect customer data confidentiality by completely erasing it from data storage devices.

NopSec

NopSec

NopSec provides automated IT security control measurement and risk remediation solutions to help businesses protect their IT environments from security breaches.

PRODAFT

PRODAFT

PRODAFT, Proactive Defense Against Future Threats, is a cyber security and cyber intelligence company providing solutions to commercial customers and government institutions.

Greenwave Systems

Greenwave Systems

Greenwave's AXON Platform enables IoT and M2M network service providers to address security, interoperability, flexibility and scalability from a single IoT platform.

Combined Selection Group (CSG)

Combined Selection Group (CSG)

CSG are Global Talent Experts, we operate across 7 specialist sectors, including Information Technology and Cybersecurity, and take a pro-active approach to executive search and headhunting.

Privacera

Privacera

Privacera enables consistent data governance, security, and compliance across all your data services - on-premises and in the cloud - so you can maximize the value of your data.

Venkon

Venkon

Venkon provides effective and unique solutions to cyber-security threats and IT compliance requirements of your organization.

Safetech Innovations

Safetech Innovations

Safetech Innovations is a team of cyber security experts, always at your service. We use human and cyber intelligence to help your business in uncertain times.

In Fidem

In Fidem

In Fidem specializes in information security management, with a bold approach that views cybersecurity as a springboard to organizational transformation rather than a barrier to innovation.

Cybaverse

Cybaverse

Cybaverse (formerly North Star Cyber Security) was founded to create the perfect blend of a Managed Security Service Provider (MSSP) and a Cyber Security Consultancy in one.

Ministry of Electronics & Information Technology (MeitY)

Ministry of Electronics & Information Technology (MeitY)

The Ministry of Electronics & Information Technology is an executive agency responsible for IT policy, strategy and development of the electronics industry.

Avint

Avint

Avint delivers transformational cybersecurity solutions that help both commercial and government entities achieve mission success.

Aptum

Aptum

Aptum is a global hybrid multi-cloud managed service provider delivering complex and high-performance cloud solutions with an integrated secure network.

ASMGi

ASMGi

ASMGi is a managed services, security and GRC solutions, and software development provider.