Hawaii Authorities Issue Warning About Crypto Scammers Posing as Police
Authorities on the island of Kauai in Hawaii have issued an advisory on June 10, alerting residents to be cautious of fraudulent cryptocurrency scams. These scams involve scammers pretending to be law enforcement officers in order to extort cryptocurrency payments.
The advisory from the Kauai Police Department outlines the deceptive tactics utilized by these scammers to deceive unsuspecting victims. Scammers typically call individuals and falsely claim that they have an outstanding arrest warrant. They then threaten the victims with arrest unless a cryptocurrency fine is paid.
Assistant Chief Kalani Ke stressed the importance of treating any calls demanding payment with extreme caution. To make their calls appear more convincing, these scammers use caller ID spoofing to make it seem like the call is coming from a legitimate government agency.
Authorities have emphasized that government-imposed fines can only be issued after a court appearance and must be paid through official channels, not in cryptocurrency. Residents are advised to avoid answering calls from unknown numbers and to refrain from sharing sensitive personal information.
The warning about these scams comes at a time when Hawaii is making changes to its cryptocurrency regulations. The state’s Department of Commerce and Consumer Affairs recently decided that crypto businesses are not required to comply with money transmitter laws, allowing them to operate as unregulated entities while following federal guidelines.
Both the FBI and Hawaii Police have issued warnings about the increasing prevalence of impersonation scams involving law enforcement and government officials. Criminals are now able to purchase fake identities on the black market, making these scams more sophisticated.
The FBI’s Portland Division has alerted the public to the rise in crypto scammers pretending to be FBI agents, using threats and intimidation to extort victims. These scammers use tactics like spoofing caller ID information to appear as legitimate federal agents.
Recipients of such communications are advised to disengage and report the incidents immediately, as federal agencies do not contact individuals with threats of arrest or demands for monetary payments. Scammers often pressure victims to make payments through various channels, including cash, gold, prepaid cards, wire transfers, or crypto ATMs.
According to the Internet Crime Complaint Center (IC3), over 14,000 victims fell victim to these schemes in 2023, resulting in losses exceeding $394 million. The Portland Division alone documented losses surpassing $1.7 million, with seniors being prime targets, accounting for over 58% of losses through impersonation crimes.
Senator Elizabeth Warren has highlighted the dangers posed by crypto scams targeting seniors, citing a 350% increase in such scams targeting seniors last year. She emphasized the need for victims to report their experiences to combat these fraudulent activities.