Rising Cryptocurrency Scams in Houston: What You Need to Know to Protect Yourself

Introduction

HOUSTON – Every year, it seems like scammers find new ways to defraud people. With the rise of cryptocurrency, criminals are increasingly using it as a means to scam individuals out of their hard-earned cash.

Daily Reports of Scams

According to Lt. Abraham Alanis with the Harris County Sheriff’s Office, “We’re getting these every day. Every day we’re getting calls from people getting these calls. A lot of them catch it before they’re scammed, but a lot of them are getting scammed out.”

How the Scams Work

One prevalent scam involves someone impersonating a law enforcement officer, claiming that the victim has a warrant for their arrest due to missed jury duty. These scammers often use spoofed phone numbers that can be traced back to legitimate agencies and may even use the names of actual officers to lend credibility to their claims.

Payment in Cryptocurrency

The scammers typically demand that victims transfer money to avoid arrest, with bitcoin being a common payment method due to its difficulty to trace. Lt. Alanis notes, “Bitcoin can be very difficult, because once it goes into bitcoin it could be transferred very quickly. And then it’s pretty much gone.”

National Statistics

This issue isn’t limited to Houston. The FBI reported 69,468 complaints of cryptocurrency scams nationwide in 2023, leading to combined losses of $5.6 billion. Texas ranked third in complaints, with 4,770 cases and estimated losses of $411,914,142. The most common type of fraud was investment fraud.

Reporting Scams

Anyone who falls victim to a cryptocurrency scam is encouraged to report it. The FBI has a dedicated link for such reports.

Protecting Yourself

To avoid falling for scams, Lt. Alanis advises: “When you get these calls, take a step back. Don’t rush to do anything. Wait. Get the information. I know once they tell you that you have to do it immediately, it’s a scam.” If you feel uneasy about the call, he suggests hanging up and verifying the caller's identity through official channels.