Written by Hazel J. Greene, Senior Analyst

The citizens of Vermont have recently been cautioned by the state’s financial regulatory agency, the Department of Financial Regulation (DFR), regarding the rising number of cryptocurrency investment scams on popular social media platforms. These scams have been attributed to cunning con artists employing sophisticated strategies to deceive victims. This blog post sheds light on the increasing prevalence of crypto scams, emphasizes the importance of reporting fraud promptly, and offers insights on combating fraudulent activities.

A recent incident involving Naum Lantsman, a 74-year-old individual, highlights the severity of crypto scams on social media platforms. Lantsman lost his life savings, amounting to $340,000, last month due to a well-executed crypto scam on Instagram—the platform identified by the Federal Trade Commission (FTC) as the primary medium associated with crypto fraud.

Lantsman’s unexpected plunge into cryptocurrency investments began when he stumbled upon a post from a company called SpireBit on Instagram. Intrigued by their portrayal as an “international financial broker,” he initiated communication with the scammer who operated through the platform.

The scammer, who went by the name Pavel, reached out to Lantsman through the messaging app Telegram, conversing in Russian, Lantsman’s native language. By creating a personal connection with Lantsman and exerting pressure on him, Pavel eventually persuaded him to invest his entire life savings in the SpireBit account. Unfortunately, the charts displaying earnings growth in Lantsman’s account were fabricated, deceiving him into trusting the scammer further.

When Lantsman attempted to withdraw funds, SpireBit presented a forged document allegedly from Barclays, demanding a 2% fee as a “security measure.” However, investigations later confirmed that the document was indeed forged. This incident reveals that scammers continuously develop tactics, forging bank documents and engaging victims in friendly conversations, in their pursuit of carrying out fraudulent schemes.

The Vermont Department of Financial Regulation (DFR) urges residents to report instances of fraud promptly to minimize financial losses and aid in identifying and pursuing the perpetrators. To combat these evolving tactics, investors must exercise vigilance and conduct thorough background checks. Extensive research before investing in digital asset platforms is crucial for avoiding falling prey to these criminal activities.

Cryptocurrency investment scams are on the rise in Vermont, with social media platforms serving as fertile grounds for fraudulent activities. The recent case of Naum Lantsman losing his life savings underscores the need for heightened awareness and caution. By promptly reporting incidents of fraud and conducting thorough research, investors can minimize their risk and protect themselves from falling victim to these deceptive schemes. Stay vigilant and be thorough in your approach to digital asset investments.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.