A person who claims to be a cash buyer contacts you. The “buyer” mentions that he or she earned a lot of money by investing in cryptocurrency and offers to connect you with his/her advisor to help you invest too. You invest and withdraw small amounts at first and keep track of your investments on-line using an app or web site that shows your investments and returns. You invest more funds and suddenly cannot access them. The “buyer” refers you to the advisor, who tells you that you owe taxes or a penalty before you can withdraw the funds. You’re finally frustrated enough to withdraw your money. You discover that the “buyer” and “advisor” are part of a criminal network that has defrauded you and taken your money.

Real estate licensees have been defrauded of more than $15 million and are a growing target for criminals, according to Mark Edgren, a Network Intrusion Forensic Analyst with the Secret Service, who recently gave a presentation for the National Association of REALTORS®. These cryptocurrency scammers use psychological tactics and are prepared to wait months for a payoff. Once the funds are taken, the scammers transfer around the world using blockchain and other types of cryptocurrency, according to Edgren, who also noted that this scam, known as “butchering the pig”, is carried out mainly by criminal networks using trafficked victims in Southeast Asia as workers. 

 Don't be scammed - follow these tips:

▪Don’t invest based on texts or emails from random people.

▪Avoid personal information. Scammers can use it to manipulate you.

▪Meet both the “cash buyer” and “advisor” in person or on a video platform.

▪Be skeptical of “get rich quick” schemes.

▪Take your time before investing.

▪Do independent research with a trusted financial advisor instead of relying solely on a stranger who “knows a guy or an app.”

▪Immediately report suspected scams to the FBI Internet Crime Complaint Center and the United States Secret Service’s Providence office at 401-331-6456.

For more information, visit the FBI Internet Crime Complaint Center  or contact the RIAR Legal Department at [email protected].