COLUMBUS – Two state agencies are sounding a warning to older Ohioans: Beware of cryptocurrency scams.
During the course of drug-related investigations, the Ohio Narcotics Intelligence Center became aware of a growing trend of financial exploitations against older adults using cryptocurrency. The ONIC joined forces with the Ohio Department of Aging to issue a public bulletin encouraging seniors, family members, and caregivers to be on the alert.
“Despite the fact that older adults are more likely to report suspected fraud than younger adults, scammers are finding new and sophisticated ways to deceive people, like these emerging cryptocurrency scams,” Department of Aging director Ursel McElroy said.
Anyone who feels they have been the target of a scam can report it to the Ohio Attorney General’s Office. Anyone who has lost money or feel unsafe because of a scam, contact local law enforcement.
Some common types of scams targeting older adults:
Romance scams: A scammer “meets” the target either online or by telephone, develops a relationship, and then requests a loan or financial help.
Government impersonation scams: A scammer pretends to be from a government agency, calls the target, and threatens arrest if payment is not immediately made.
Grandparent scams: The scammer pretends to be a grandchild of the target, states they are in trouble, and need money immediately.
Fraudsters often ask individuals to pay in cryptocurrency, a form of digital or virtual currency that can be used for payment methods or for sending and receiving funds, or through cryptocurrency ATMs.
Two of the most popular forms of cryptocurrency are Bitcoin and Ethereum.
According to guidelines published by the Federal Trade Commission, no legitimate business is going to demand an individual send cryptocurrency in advance of a purchase or to protect their money. If someone on a dating site wants to show an intended victim how to invest in cryptocurrency, or asks them to send cryptocurrency, that is an indicator of a likely scam.
Before investing in cryptocurrency, FTC experts recommend searching online for the name of the company or person and cryptocurrency name, including words like “review,” “scam,” or “complaint” to see what others are saying.