‘The Money Is Gone’: The Victim Of Social Media Cryptocurrency Scam Warns Others

By Marissa Perlman

Click here for updates on this story

    CHICAGO (WBBM) — Hackers taking your money, posing as your friends on Instagram. CBS 2’s Marissa Perlman reports one woman’s story, and the warning signs she wants you to look out for.

The woman is out $1,000 and more than the money, her identity and information are at risk. Social media has become a gold mine for crypto scams nationwide: $770 million from social media loses were reported last year alone.

The hackers can get into an existing profile studying personal details you share on social media to convince you to buy in.

Jessica M. is a mom of two and was excited when her friend of five years posted on her Instagram she’d made big cash investing in crypto. She’s asked CBS 2 not to use her last name.

“It was something else to diversify my portfolio and help my family,” she said, adding that with any investment opportunity, Jessica knew there was some risk, but she trusted her friend.

“This is when she’s saying (that) it’s 100% legitimate.”

So Jessica transferred $1,000 to her new crypto account after calling that same friend, she wasn’t talking to her friend at all. A crypto scammer had been posing as her online, messaging her contacts and stole Jessica’s money.

“It didn’t dawn on me that the friend I had known for five years had been phished,” she said, adding the promise of big returns left her empty handed. Does she have faith that she’ll see all her money?

“No. The money is gone.”

Jessica is not alone. In a new consumer protection report, the Federal Trade Commission found social media platforms, mainly Instagram and Facebook, have become the go to place for scammers to play out their cons.

More than half of people who reported losses to investments said the scam started on social media.

“We cant keep up with the technology. It changes that fast.”

President of the Better Business Bureau Steve Bernas said bitcoin complaints have tripled in the last three years and the scams are getting more sophisticated.

“The only way to put scams out of business is not to give them any business. There are not enough courts and not enough police worldwide to protect you and your money.

For Jessica, she didn’t lose much. She knows it’s likely these scammers will never be caught and worries about the next victim and her personal information now in the hands of scammers.

“Beyond money, a piece of you is now gone, right?”

Here’s what to look out for: If some one gives you a time frame where you need to transfer money, that’s a tip off to the rip off.

And even if it’s your own friends or family you’re communicating with about any investment, the Better Business Bureau said speak with someone on the phone to confirm they’re identity.

Please note: This content carries a strict local market embargo. If you share the same market as the contributor of this article, you may not use it on any platform.