Challenges Law Enforcement Faces in Combatting Cryptocurrency Scams

Lincoln law enforcement faces challenges addressing cryptocurrency scams, having investigated 18 cases since 2020, with losses reaching $156,000. The LPD has reported victims losing over $1 million in total. The evolving tactics of scammers involve adept social engineering, creating emotional distress for victims. Local banks are training staff to identify signs of scamming. Reporting scams can help prevent future occurrences.

Local law enforcement in Lincoln, Nebraska, reports significant challenges regarding cryptocurrency scams, which have led to substantial financial losses since 2020. The Lancaster County Sheriff’s Office (LSO) has recorded 18 cases, with some individuals losing as much as $156,000. According to LSO Chief Deputy Ben Houchin, the emotional toll on victims is devastating as many may never recover their lost funds.

The Lincoln Police Department (LPD) has noted that multiple victims have suffered losses exceeding $1 million over the past five years, with the highest case at approximately $1.5 million. LPD Sgt. Steve Wiese highlights the adeptness of scammers in social engineering, enabling them to manipulate victims into divulging personal information.

Losses from cryptocurrency scams occur more frequently than realised, as indicated by the LPD’s annual report, which categorises these cases under fraud. On average, officers respond to about 2,364 fraud-related calls each year. Despite consistent annual figures, the tactics employed by fraudsters evolve, including romance scams and misleading messages on social media.

Law enforcement states that scammers often engage victims over the phone throughout the scam, guiding them through processes such as money withdrawals. Local banks have also taken measures, training tellers to recognise warning signs indicative of potential scams. Angie Schreiner from Liberty First Credit Union stated that tellers observe customer’s attitudes and the context of transactions to identify red flags.

If individuals fall victim to a scam, the likelihood of recovering funds is slim; however, reporting incidents can assist law enforcement in preventing future scams. Resources available for those affected by cryptocurrency scams include the Protect the Good Life Fraud Report, Lincoln Police Department Online Reporting, and the Internet Crime Complaint Center (IC3).