SALT LAKE CITY (KUTV) — There has been a new effort to crack down on cryptocurrency scams in Utah.
The city of Layton became the first city in Utah to ban cryptocurrency kiosk machines after many people fell victim to scams.
FBI agent Mike Montoya said one of the most common scams involves victims being instructed to deposit money into a crypto machine. It’s a tactic that has led to devastating losses.
MORE | Layton City adopts ordinance to prohibit cryptocurrency ATMs
One Utah woman, Anola Johnson, said she lost $850,000 after a scammer contacted her online and built a relationship with her.
“He was telling me that he cared about me. He basically figured out pretty quickly what a good target,” Johnson said.
What started as an online connection eventually turned into a romantic relationship scam, she said.
“I lost about $850,000, which is everything I had and more, actually,” Johnson said.
Johnson said the scam began in 2023 when a man reached out to her on LinkedIn. The relationship eventually led to a request for money.
“The first time was he was asking me [for money], he said, ‘Well, I think we should go in together on an investment, a crypto investment,'” she said.
The FBI said cases like this are becoming more difficult to stop and even harder to return the money lost to the victim.
“It’s rare that we’re able to recover the funds,” FBI Agent Mike Montoya said.
Agent Montoya said they believe the ban in Layton could make an impact.
“I believe that it’ll absolutely make an impact, especially with our elder folks and folks that are kind of being walked from the beginning to the end of transferring the cryptocurrency,” Montoya said.
But officials warn scammers are constantly evolving, using new technology to stay ahead.
“Subjects are able to make fake websites that look like true banks, that look like true investment firms, making corporations in the state of Utah that appear to be reputable,” Montoya said.
FBI officials said scammers are increasingly using tools like artificial intelligence to create more convincing schemes.
FBI officials said the best way to protect yourself is to never send money to someone you don’t know online. They also urge anyone who believes they’ve been a victim of fraud to report it immediately.
To report Scams to the FBI, click here: Home Page – Internet Crime Complaint Center
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