In a disturbing trend, the rise of cryptocurrency has attracted a growing number of scam artists who are targeting social media users in an attempt to defraud them of their money. Kelly Mitchell, a 56-year-old co-founder of Mitchell Garman Architects in Dallas, recently fell victim to such a scam when her Facebook account was hacked by cybercriminals. Mitchell’s experience is not unique, as nearly one million people have been affected by ransomware attacks, phishing attacks, or data security breaches in the past year alone.
According to Eric O’Neill, a former counterintelligence operative at the FBI and national security strategist for cybersecurity company NeXasure, Mitchell’s case likely involved a combination of impersonation and “pig butchering.” Impersonation attacks involve cybercriminals posing as someone else to deceive their targets, while “pig butchering” refers to scammers convincing victims to make long-term investments in fraudulent schemes until they have extracted the desired amount of money.
The Federal Trade Commission (FTC) reports that Americans lost a staggering $1.41 billion to crypto scams in 47,537 fraud reports in 2023. The commission also highlights the skyrocketing number of cryptocurrency fraud reports in recent years. Facebook/Meta, with its nearly 3 billion active users, has become a breeding ground for such scams, especially considering the prevalence of fake accounts. This has amplified the urgency for individuals to prioritize online safety on social media platforms.
Paul Bischoff, a consumer privacy expert and editor at Comparitech.com, emphasizes the need for users to take responsibility for their own online spaces. While Facebook should do more to ensure user safety, the platform is overwhelmed by the volume of complaints it receives. Therefore, individuals must practice basic internet hygiene, such as enabling two-factor authentication and using complex passwords.
Stephanie Talamantez, a former FBI agent specializing in cryptocurrency fraud cases, advises users to remain vigilant and apply additional security measures. Scammers often employ tactics like posting religious messages or exploiting people’s beliefs in affinity scams. Users should also be cautious of investment promises that seem too good to be true or suspicious accounts with low follower counts and no mutual connections.
The advent of artificial intelligence has further complicated online fraud schemes. Scammers can now use tools like ChatGPT to mimic the writing styles of legitimate companies or individuals. Services like GPTZero, which claim to detect AI-generated content, can be helpful in identifying potential scams.