Actions to address cryptocurrency scams in Utah

SALT LAKE CITY — New Move Against Cryptocurrency Fraud in Utah

A fresh initiative to combat virtual currency fraud has kicked off in Utah. Layton, for instance, has taken the lead as the first city in the state to prohibit the use of virtual currency kiosks, following numerous incidents where residents fell prey to scams.

FBI Agent Mike Montoya pointed out that one prevalent scam involves victims being lured into depositing cash into cryptocurrency machines, leading to significant financial losses.

Anora Johnson, a resident of Utah, shared her harrowing experience, revealing she lost an incredible $850,000 after an online scammer built a relationship with her. “He told me he cared about me and seemed to identify me as an easy target,” Johnson recounted.

What started as a seemingly innocent online interaction devolved into a romance scam, according to her. “I lost about $850,000, which was everything I had—and then some,” she added.

Johnson’s ordeal began in 2023 when a man reached out to her on LinkedIn. The relationship soon shifted into requests for financial support, starting with a suggestion to invest together in cryptocurrencies. “The first time he asked me for money, he said, ‘I think we should get into investing together, crypto investing,'” she recalled.

According to the FBI, stopping these types of fraud is becoming increasingly challenging, and recovering lost funds for victims is even more difficult. “It’s rare that we can recover the funds,” Montoya stated.

Montoya expressed optimism that the ban implemented in Layton might yield positive results. “I believe this will absolutely impact especially our senior citizens and those who are navigating the process of cryptocurrency transfers,” he said.

However, authorities caution that scammers are continually adapting, utilizing new technologies to maintain their advantage. “They can create fake websites that appear to belong to legitimate banks or investment firms, mimicking real companies in Utah,” Montoya explained.

FBI officials also noted a growing trend of scammers leveraging artificial intelligence to craft more persuasive schemes. Their best advice for staying safe? Avoid sending money online to strangers. They also urge anyone suspecting they’ve fallen victim to fraud to report it right away.