Rise of Investment Scams in California
A California resident has reported a concerning incident involving a stranger named “Sandy,” who initially reached out via text message. After some exchanges, Sandy suggested they transition their conversations to WhatsApp, where their connection deepened. Eventually, Sandy introduced the victim to a crypto trading platform called Wealth Bax, urging them to open an account and transfer funds to a specific website. The victim was required to provide personal details and upload a photo of their driver’s license to complete the account setup. After depositing cryptocurrency, the victim began trading, only to later discover that they were unable to withdraw their funds due to an unexpected demand for payment of over $40,000 in taxes to the IRS. Despite attempts to contact Sandy for assistance, the victim was unsuccessful in retrieving their funds, as the website became inactive.
Fraudulent Trading Platforms and Their Tactics
Another Californian reported being lured into a Telegram group where they were promised education on crypto asset trading by an individual named Mason, who claimed to be associated with a reputable financial firm. Following instructions from this group, the victim opened an account with a platform named TPKcoin and made an initial deposit. However, after participating in a trading program, they were hit with demands for exorbitant fees, including $29,000 in commissions and $48,000 in taxes before they could access their funds. When the victim sought further advice, they were blocked from the platform entirely, and the website ceased operations.
Romance Scams and Financial Deceit
In another case, a California resident became involved with an online investment group led by a supposed professor named Robert. After promising high returns on investments, Robert guided the victim to a platform called SILD, where they made substantial deposits. When the victim attempted to participate in an exclusive investment tier, they were told they needed to invest an even larger amount to join. After liquidating personal assets to meet the investment threshold, the victim was later informed that they owed taxes on their profits, which amounted to a significant sum, resulting in a total loss exceeding $85,000.
Impersonation Scams Targeting Victims
A victim reported being contacted by someone purporting to be a romantic interest through Instagram. After establishing a relationship, the scammer introduced them to a trading platform called Bitex and provided guidance on investing. Initially, the victim was able to withdraw some funds, but when they attempted to withdraw a larger amount, they were confronted with demands for substantial fees, including a $30,000 tax fee and additional charges for account verification. Ultimately, the victim lost access to their funds as the platform became unresponsive.
Phishing Scams and Unauthorized Transactions
In a separate incident, a California resident reported receiving a phishing email that appeared to be from a legitimate investment firm. The email claimed that their account would be suspended and directed the victim to verify their information by clicking a link. After providing sensitive information, the victim discovered that their assets had been drained from their cryptocurrency wallet. This incident underscores the risks associated with unsolicited communications and the importance of verifying the legitimacy of such requests.
Warnings from Authorities
The Department of Financial Protection and Innovation (DFPI) has issued warnings regarding these types of scams, urging consumers to remain vigilant and conduct thorough research before engaging with online investment opportunities. The rise of scams, particularly in the cryptocurrency space, highlights the need for increased awareness and caution among potential investors.
