Crypto scammers in Hawaii are posing as law enforcement officers to steal cryptocurrency from unsuspecting victims, as warned by authorities on the island of Kauai in a recent advisory issued on June 10. These fraudsters are using deceptive tactics to extort payments in crypto by claiming that the victims have outstanding arrest warrants and threatening them with arrest if they do not comply.
Assistant Chief Kalani Ke stressed the importance of treating any calls demanding payment with suspicion, as these scammers are using caller ID spoofing to make it appear as if the calls are coming from legitimate government agencies. The Kauai Police Department emphasized that government fines can only be issued after a court appearance and must be paid through official channels, not in cryptocurrency.
Residents have been advised to avoid answering calls from unknown numbers and to never share personal information, as these scammers are becoming increasingly sophisticated in their tactics. It is crucial to report such incidents to the authorities, and Chief Kalani reiterated that law enforcement agencies will never call individuals to demand payment.
This warning comes amidst changes in Hawaii’s cryptocurrency regulations, with the Department of Commerce and Consumer Affairs ruling that crypto businesses do not need to comply with money transmitter laws, allowing them to operate as unregulated entities while following federal guidelines.
The FBI and Hawaii Police have also issued warnings about escalating impersonation scams involving law enforcement and government officials, as criminals can now easily purchase fake identities on the black market. Crypto scammers are posing as FBI agents, using threats and intimidation to extort victims, and the public is urged to disengage and report any incidents immediately.
These scammers often pressure victims into making payments through various channels, including cash, gold, prepaid cards, wire transfers, or crypto ATMs, with losses exceeding $394 million in 2023 alone. Seniors are particularly vulnerable to these scams, with over 58% of losses through impersonation crimes totaling nearly $770 million. Senator Elizabeth Warren has highlighted the dangers of crypto scams targeting seniors, with a 350% increase in such scams reported last year. It is crucial to remain vigilant and report any suspicious activity to prevent falling victim to these fraudulent schemes.
