A St. Francis woman lost $80,000 to a cryptocurrency scam after investing through a supposed lucrative opportunity on Facebook. Despite initial perceptions of success, she was eventually asked to pay taxes to withdraw her funds, leading to the realisation she was deceived. Experts highlight the difficulties in tracing cryptocurrency scams, advising caution in social media investments and checking broker credentials. Police investigations suggest the scam originated in Nigeria.
A woman from St. Francis, Wisconsin lost $80,000 in a cryptocurrency scam after initially believing she had made significant profits through investments. Surprising her husband, she presented her supposed earnings on their wedding anniversary, unaware of the harsh reality ahead. Her husband, Scott Johansson, showed concern upon seeing her excitement and soon realised the investment was likely fraudulent.
The scheme began on Facebook, where Johansson’s wife made her initial investment of $30,000, claiming it exceeded stock market returns. Remarkably, she decided to invest a total of $55,000, eventually looking to withdraw $100,000 in cryptocurrency. However, she was told she needed to pay an additional $30,000 in taxes and fines, which she did, before realising she had been scammed.
April DeValkenaere, a certified cryptocurrency investigator and owner of Fortress Forensic Investigations, explained common tactics used by scammers. They typically encourage smaller initial investments that promise significant returns in short periods, often claiming to double the money within weeks. Victims can track their investments on phony platforms, but the truth is that funds are misappropriated upon deposit.
The nature of cryptocurrency transactions, which lack regulation and central oversight, complicates tracing efforts, especially when money is repeatedly moved. DeValkenaere recommends avoiding investment opportunities found on social media and suggests checking broker credentials on FINRA.org to ensure legitimacy.
Johansson and his wife promptly reported the incident to the police, who informed them of a 99% chance that their funds were lost. Investigators suspect the scammer’s operations are based in Nigeria. As a result of this ordeal, Johansson’s wife is now facing challenges with trust and sleep.
Johansson emphasizes the lesson learned from their experience, warning others to be sceptical of seemingly miraculous investment opportunities. A prominent warning sign was the request for upfront taxes before allowing any money withdrawal; such demands are atypical for non-regulated cryptocurrency.
