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WAIFA·International Internet Fraud Prevention Alliance, New York, York, NY (2026)

09/18/2024

Marchak v. JPMorgan Chase & Co.
Case Number : 11-CV-5839 MKB
Date filed : 2/6/15
State : New York
Background : The plaintiff, in this case, is Alexander Marchak and the defendants are JPMorgan Chase & CO., JPMorgan Chase Bank N.A., M&T Bank Corporation, HSBC North America Inc. HSBC Bank USA, N.A., and TD Bank, N.A. This case comes from the Ponzi scheme that was carried out by Philip Barry and was allegedly enabled by the defendants. Barry operated the Leverage Group, Leverage Option Management Inc., and Northern American Financial Services which promised their clients that if they invested or maintained their investments with them, they were guaranteed an annual rate of return of 12.55%. This scheme was operated from January 1978 through February 2009. Barry would place the client's money into accounts opened with the defendants and would conduct large dollar transactions by check and made routinely large cash withdrawals. He had written at least 1,623 checks between the years 2004 and 2009. The scam involved telling the clients that their funds would go to trade-in options or other securities but instead would use the funds for their personal expenses and to meet withdrawal demands from investors.
Plaintiff Argument : The defendants are alleged of breaching various obligations under federal banking regulations which include anti-money laundering (“AML”) rules found in *203 Section 352 of the United States Patriot Act rules imposed by the Bank Secrecy Act (“BSA”). They are also alleged of failing to fully comply with regulatory duties to institute programs to “know your customer” (“KYC”) to monitor the accounts and activities of Barry to ensure that appropriate actions were taken when evidence of illegal activities in the accounts were apparent. Because of their failure to uphold their duties, they enabled and facilitate significant financial fraud.
- Knowing participation in a breach of trust
- Aiding and abetting fraud
- Aiding and abetting breach of fiduciary duty
- Aiding and abetting conversion
- Unjust enrichment
- Fraud on the regulator
- Negligence
Defendant Argument : Plaintiffs’ claims are precluded by SLUSA or are removable pursuant to 28 U.S.C §§ 1441 and 1331 since the plaintiffs’ claims present federal questions arising under the laws of the United States. The defendants argue that the claims fall under class action since there are at least 50 plaintiffs with common issues of law and the complaint does not distinguish between them. The claims of the plaintiffs seek only to enforce duties or obligations allegedly created by and arising directly under these federal laws. The complaints contain numerous allegations about securities investments and that the plaintiffs were deceived into investing in Leverage with promises to invest their money in exchange-traded stock options of exchange-registred companies. The securities involved were not deposits to a bank account but rather a falsely promised option. Purchasing, sale, or holding of actual “covered securities” is not required for an action to come within SLUSA’s (Securities Litigation Uniform Standards Act) preview. Barry suggested to investors that their money would be invested in “opinions and securities”, so his failing to purchase any securities does not take this case outside of SLUSA’s purview as defined in Troice. Herald II, 753 F.3rd at 113.
The plaintiffs’ claims are unable to stand alone without referencing Barry’s fraud and the supposed knowledge of that fraud that the defendants had which satisfies the material misrepresentation or omission requirement.
Judge Verdict: Since the requirements of SLUSA have been met for each cause of action, the complaint was removed from the court and the court denies the plaintiffs’ motion to remand and dismissed the complaint in its entirety.
Securities Litigation Uniform Standards Act : A federal law in the United States that deals with private class action lawsuits conversing securities fraud. SLUSA modified sections of the Securities Act of 1933 and the Securities Exchange Act of 1934 to prevent specific class actions claiming fraud under state law related to the buying or selling of securities. As a result, these lawsuits are not permissible in state or federal courts.
https://wa.me/19166991690

09/12/2024

Stay vigilant online! Protect your personal information by verifying sources, avoiding suspicious links, and being cautious with unsolicited messages. Your security starts with awareness.
https://wa.me/19166991690

09/05/2024

Internet romance full of scams, FBI urges seniors to be careful
(Comprehensive) The FBI's San Francisco Bureau has recently warned that romance scams are on the rise, often involving online video chats between two parties who gain trust and then trick victims into sending money or making "investments," with older people often being the targets.

According to the Federal Bureau of Investigation (FBI) Cybercrime Complaint Center, the cumulative amount of romance scams reported by the San Francisco Bureau in 2021 exceeded $64 million, a significant increase of 1.8 times the total scam amount more than $35 million in 2020 statistics.

Not only has the number of complaints increased, but FBI figures show that seniors are the most common targets of online romance scams, with a total loss of $18 million for this group.

"The San Francisco Chronicle reported on the 11th that FBI spokeswoman Caroline Polan explained that people looking for romantic partners on dating sites, apps, or social media must be careful about being used by scammers, as the ultimate goal of such love scams is to "financially exploit The ultimate goal of such love scams is to "financially control the victim.

Poland analyzed that scammers watch their victims' social media or dating sites to hone their romantic scamming skills and then have in-depth conversations with their victims via email or text message to learn more about their lives, views on love, and their thoughts on the future.

She said the scammers are often "amazingly" "in tune" with their victims, whether it's a favorite book, music, or garden planting.

Recently, the FBI's San Francisco division has also seen an increase in cases where love scammers ask victims to send money to invest and trade in cryptocurrencies. Eventually, when the victim does not continue to send money, the scammer will stop communication between the two parties.

The FBI warns that you should not send money or invest in "online friendships" or disclose your finances, bank accounts, or identity information to people you don't know well or trust, or to people who claim to have "exclusive investment opportunities" and urge you to Be cautious of people who claim to have "exclusive investment opportunities" and who encourage you to "act quickly to send money.
https://wa.me/19166991690

09/04/2024

Informational News on Internet Scams
The World Anti-Internet Fraud Alliance has done research on internet scams. To spread awareness and education, we share with you these stories of internet scams:
Two people arrested in Nicosia for an internet fraud operation
Key Points:
Two individuals, a 51-year-old male and a 22-year-old female, were arrested for cases of embezzlement and fraud.
According to police reports, several people were conned between June and July 2022 and had money extorted from them totaling €15,000. Remittances were used to deposit the funds into bank accounts in Cyprus and overseas. Two of the bank accounts are jointly owned by the 22-year-old and the company of the 51-year-old.
The two suspects are being looked at for money laundering, wire fraud, falsifying documents, etc.
https://wa.me/19166991690
Senior citizens lost approximately $1 billion as a result of fraud
Key Points:
105,301 individuals aged 65 or older were scammed by internet fraudsters and lost an average of $9,175. To add on, nearly 2,000 older Americans had losses greater than $100,000.
Millions of elderly individuals fall for some sort of scams such as romance scams, tech support fraud, lottery scams, and sweepstake scams.
https://wa.me/19166991690
Computer Anti-virus Protection Fraud
Key Points:
Vinoth Ponmaran, a 34-year-old Indian man, was charged by U.S. prosecutors in Manhattan for his role in a scheme that tricked over 7,000 victims, many of whom were elderly, into buying unnecessary computer anti-virus protection software by falsely alleging that their devices had been infected by malware.
The victims will see pop-ups on their computers, sometimes containing logos from well-known companies, making them believe that a virus is actually detected from their computer. They’d then be lured into purchasing anti-virus tools from the fraudsters and end up losing money and giving away their personal information.
Madison faces up to 20 years in prison for both the charges of conspiring to commit wire fraud and actually committing wire fraud.
https://wa.me/19166991690
Ransomware Incidents
Key Points:
Colonial Pipeline Ransomware Incident: On May 7, 2021, hackers left a ransom note in the control room of the Colonial Pipeline, demanding cryptocurrency in exchange for the decryption of the oil and gas company's data. The hackers were able to use a former employee's password to log into its VPN and get into the company system. Eventually, the company paid nearly $5 million in bitcoin to contain the threat.
Kaseya Attack: A ransomware attack against the Florida-based software company Kaseya resulted in the infection of up to 1,500 businesses who employed the company's IT products. A Swedish grocery chain had to close hundreds of its stores due to this attack. The hacking group, REvil demanded an outrageous $70 million to repair all affected systems. Kaseya's systems were all restored later, but it's not clear if they paid the ransom.
https://wa.me/19166991690
Romanian Hacker Known As “Virus” Extradited For Distribution Of Destructive Malware
Key Points:
Mihai Ionut Paunescu is a dual Romanian and Latvian national, who was extradited for allegedly running a “bulletproof hosting” service that allowed cyber criminals to implant the Gozi virus, a computer virus that is considered to be one of the most “financially destructive” viruses in history.
Additionally, Paunescu is accused of facilitating spam spreading, distributed denial of service (DDoS) assaults, and the distribution of malware such as the "Zeus Trojan" and the "SpyEye Trojan."
The Gozi Virus is malware that took control of infected computers and stole users' personal banking information.
Over a million computers were victims of the Gozi Virus, including over 40,000 in the United States, including machines used by NASA.
Paunescu has caused, in total, tens of millions of dollars in losses to the individuals, businesses, and government entities.
Paunescu has been charged with, according to justice.gov: “one count of conspiracy to commit computer intrusion, which carries a maximum penalty of 10 years in prison; one count of conspiracy to commit bank fraud, which carries a maximum penalty of 30 years in prison; and one count of conspiracy to commit wire fraud, which carries a maximum penalty of 20 years in prison.”
https://wa.me/19166991690
Quincy Man Arrested for Using Various Online Schemes to Defraud Victims
Key Points:
Kelechi Collins Umeh, a Quincy resident, was detained for his involvement in large-scale internet fraud operations that prey on Americans.
Umeh was involved in romance scams, advance fee scams, and business email compromise scams. The scams were intended to trick victims into sending money to accounts that he and his conspirators controlled.
Umeh is accused of a single count of bank fraud conspiracy.
Umeh is accused of opening bank accounts in and around Boston using fake passports in the names of multiple aliases in order to collect and launder the earnings from the online scams.
Umeh and co. allegedly execute quick large cash withdrawals from their fraudulent accounts, typically days after they receive a deposit and typically organized in sums under $10,000, in an effort to avoid detection and the reporting requirements for money transactions.
https://wa.me/19166991690
Extradition of a Nigerian to the US to face fraud accusations
Key Points:
Fatade Idowu Olamilekan, a suspect in wire fraud who was wanted by the Federal Bureau of Investigation (FBI), has been extradited to the United States on counts of fraud and aggravated identity theft in conjunction with allegedly stealing equipment valued at more than $3.5 million and committing fraud and aggravated identity fraud.
Damian Williams, a U.S. Attorney, said: “Fatade Idowu Olamilekan is alleged to have carried out a sprawling criminal scheme to fraudulently obtain medical equipment and other merchandise.
Olamilekan allegedly identified U.S. procurement officials, including the Chief Procurement Officer for New York, to then impersonate them and use their credentials to request millions of dollars in equipment shipments from various suppliers without advance payment. Olamileken has now been extradited to the U.S. for his alleged attempt to illegally profiteer from the worldwide pandemic.”
https://wa.me/19166991690
Kenneth Gibson: Stole Info From Thousands of Employees and Customers
Key Points:
Kenneth Gibson worked as an IT expert for a software firm between 2012 and 2017. He had access to the personal information of thousands of consumers and workers. During his five years at the organization, he stole data meticulously.
Gibson created a computer software that would read people's information from the list and create phony accounts for them. He utilized those accounts to transfer little sums of money in a systematic manner. This system worked 24 hours a day, seven days a week, and he established almost 8,000 bogus PayPal accounts over time. He remained undiscovered since he sent money in modest amounts.
He was eventually discovered when he asked PayPal to give him a check. Normally, he would get cash from an ATM, but he became irresponsible. One of the cheques he received from PayPal had the same name as one of the victims.
He was sentenced to four years in jail, three years of supervised leave, and community service. To recoup the $3.5 million stolen, he had to pay $1 million in compensation and sell assets.
https://wa.me/19166991690
Broken hearts and Millions Lost Resulting From the Explosion of Romance Scams
Suzanne Woolley, Misyrlena Egkolgopoulou, and Claire Ballentine have recently published a news article on Bloomberg with the title, “Romance Scams Explode, Leaving Broken Hearts and Millions Lost”. The article goes through how romance scams have been on rise due to the lockdowns caused by the pandemic.
The article includes statistics from the Federal Trade Commission stating that in 2021 more than 95,000 US citizens reported fraud that started on social media platforms, with damages totalling around $770 million. They have a bar graph to visually present the disparity in fraud loss between the years.
They interviewed a 38-year old woman named Rebecca Rosebrough who was a victim to a romance scam and lost around $24,000. The article goes through the process of how Rebecca was scammed.
https://wa.me/19166991690
Euro Police Bust €3m Internet Fraud Gang
Key Points:
Police from Spain and Romania have teamed up to bust a group that is said to have made at least €3 million (3.1 million dollars) from online scams.
After a long investigation, Spain and Romania jailed 9 people in total, with Spain having three and Romania having six
Suspects are charged with publishing fake advertisements for used cars and other goods. Sometimes they would reprint legitimate ads but alter the contact information.
They would collect money from pre-payments and then disappear without giving their buyer a product
Police raids resulted in the seizure of jewelry, watches, cash (€4500 and £2800), and more than €20,000 in cryptocurrency. Investigators also took 14 mobile phones, 70 SIM cards, a server, eight computers, 17 hard drives, and other items, according to the news agency.
https://wa.me/19166991690

09/03/2024

United States v. Ayelotan
Case Number: 17-60397
Court: United States District Court for the Southern District of Mississippi
Plaintiff: United States of America
Defendants: Oladimeji Ayelotan, Femi Mewase, and Rasaq Raheem
Case Filed: 03/04/2019
Type of Scam: money mule, romance scam
Amount: more than $25 million (intended loss)/ $52 million (according to the PSR’s calculations). At least 37,817 credit cards involved in the conspiracy.
Case Summary:
Oladimeji Ayelotan, Femi Mewase, and Rasaq Raheem were charged with a sprawling international romance scam that stole both hearts and money from many American victims. They posed themselves as bachelors and bachelorette, sitting at overseas computers, making fake promises of love and romance that ultimately guided unsuspecting victims into sending money to Nigeria and South Africa. They first stole personal information such as names, social security numbers, credit card and bank account numbers and impersonated a group of victims to get money from bank accounts. In order to transfer this money, they then scammed another group of victims. On dating websites, with scripts and step-by-step guides, after forming fake romantic relationships, they sweet talked victims into laundering their money (money mule).
Reason Filed:
A wary target reported her suspicions to the police leading to investigation by the Homeland Security Investigations (the Department of Homeland Security’s investigation arm).
Debates and Laws Cited:
a) Ayelotan and Raheem—the shackling of their legs during trial
b) Raheem and Mewase—the admission of various emails and Mewase’s nonoriginal passport
c) Ayelotan and Mewase—the dismissal of a juror
d) Leadership Enhancement and Eighth Amendment argument
a. Ayelotan and Raheem argued that the shackling of their legs during trial violated their due process rights. The district court’s response to this is that under the Fifth and the Fourteenth Amendments, courts may shackle defendants when there’s a danger of harm or escape. The court had evidence of this. For example, at Ayelotan’s extradition hearing, he and other defendants caused such a ruckus that SWAT had to be called in. In addition, the defendants restraints weren’t visible. Therefore, the district court did not violate the defendant’s due process rights.
b. At trial, the government found large amounts of emails that the defendants sent out to their romantic targets revealing the defendants’ fraudulent activities and instructions for money mules. On appeal, Raheem and Mewase challenge the admission of these emails and records under the Federal Rules of Evidence and the Confrontation Clause. Mewase also contends that admission of a duplicate copy of his passport identification page violated the Best Evidence Rule. Both challenges failed. The court held that Yohoo! and Google with records-custodian certificates, are admissible self-authenticating business records (Rule 803(6)(A)–(C) and Rule 801(d)).
c. Ayelotan and Mewase contended the court’s decision in removing Juror 20 violated their due process rights. The district court’s response to this is that the Federal Rules of Criminal Procedure allows judges to remove jurors that are unable to perform their duties. The juror slept through witness testimony; misrepresented this fact to the district court when asked; didn’t understand, or else didn’t follow, the jury instructions; and didn’t deliberate. This was testified by other jurors.
d. Ayelotan and Raheem objected to their leadership enhancements, and instead they should’ve been given a minor-role reduction. The district court specifically relied on several § 3B1.1 factors in determining leadership roles. At sentencing, the court heard testimony from case agent Williams. Agent Williams testified that Ayelotan and Raheem “was involved in almost every scam involved in the offense”; that the two “participated in planning or organizing it”; and that they directly controlled other conspirators. Ayelotan and Raheem also raised the Eighth Amendment argument. They asserted that life sentences for nonviolent crimes under the amendment is cruel and unusual punishment. However, there is no error. Ayelotan and Raheem’s within-Guidelines sentences do not violate the Eighth Amendment.
Court Results:
Ayelotan - The court imposed a 22-level increase for the intended loss. And it imposed a 4-level enhancement for his leadership role. This came to a total Guidelines offense level of 43. Given Ayelotan’s criminal history, his Guidelines sentence was life imprisonment. The court reduced that to the within-Guidelines statutory maximum of 95 years.
Raheem-The court applied an offense level of 43 for the intended loss and his leadership role. His initial sentencing range was life imprisonment. But the court decreased it. His within-Guidelines statutory maximum was 115 years
Mewase- The court applied an 22-level increase for the intended loss. The resulting Guidelines range was 262 to 327 months.
The court reduced that to 262 to 300, the statutory maximum. The court then sentenced him to 25 years of imprisonment.
https://wa.me/19166991690

09/02/2024

The Online Pet Scam
An online pet scam is a fraudulent scheme where scammers create fake listings for pets, often at attractive prices, to lure unsuspecting buyers into making payments for pets that don't actually exist. These scams typically take place on online classified ads platforms, social media, or fake websites pretending to be legitimate pet sellers.
Here is a news article detailing how a resident in Innisfil, Ontario fell victim to an online pet scam. The woman fell victim to deception and sent multiple payments, but she ultimately did not receive the promised puppy. This serves as a reminder of the importance of being cautious and vigilant when dealing with online pet transactions to avoid falling victim to scams.
What are some warning signs to look out for?
Scammers post advertisements for popular and desirable pet breeds at prices that are too good to be true. These ads are usually accompanied with adorable pictures and appealing descriptions.
Scammers may use stolen images from legitimate breeders or pet owners to make their listings seem more authentic. Be sure to check if the animal’s photo or listing appear on multiple websites.
Sketchy payment – The seller will usually request for payment via non-secure methods. These include wire transfers, gift cards, or venmo which makes it difficult for victims to recover their funds if they realize that they have been scammed.
The seller shows a preference for communicating via email rather than phone calls. A trustworthy seller will consistently engage in communication through phone calls or video chats (if not available in person) before selling a pet to you.
The seller strongly insists on shipping the animal instead of offering it in person.
Tips to avoid falling victim to an online pet scam:
Thoroughly research the seller and the pet. Look for reviews or feedback from previous buyers and avoid sellers who don't provide any credible information about themselves or the pet.
Perform a reverse-image search on pictures of the animal that you are considering buying and also, copy and paste the text from a sales site or ad into a search engine. If you discover identical images or text on multiple sites, it is likely that you are dealing with a scammer.
Request a live video call with the seller to see the pet in real-time. If the seller refuses or makes excuses, it's a warning sign.
If possible, meet the seller in person to see the pet and its living conditions before making any payment.
Ask for documentation such as health records, vaccination certificates, and registration papers for the pet.
Stick to reputable websites or platforms that have measures in place to verify sellers and protect buyers from scams.
Be Wary of Low Prices: If a deal seems too good to be true, it probably is. Be cautious of heavily discounted prices on high-demand pets.
Avoid making payments through untraceable methods such as wire transfers or cryptocurrency. Use secure and trackable payment options, such as PayPal or credit cards.
https://wa.me/19166991690

09/02/2024

Information on Cryptocurrency Scams
The World Anti-Internet Fraud Alliance has conducted extensive research on online scams. To increase awareness and educate the public, we are sharing these stories of internet fraud with you
Pig Butchering Scam
The Pig Butchering scam, also known as “Pig Slaughter” or “Slaughter,” is a sophisticated form of fraud that involves building a deceptive relationship with victims over weeks or months. This scam, often linked to cryptocurrency, originated in China but has now spread globally, evolving into an extensive international fraud network. (Click here for more details: Weibo China on the rising cases of Pig Butchering in the U.S. and real-life case studies from China.)
Victims are usually women who face severe financial losses, often life-altering. Statistics reveal that the average loss is $98,000, affecting over 240 individuals. The scam's impact extends beyond financial ruin, leading to broken families, divorces, and even suicides.
The scam unfolds gradually: fraudsters first build trust by allowing small withdrawals, creating a false sense of security, and then systematically deplete the victim’s assets until they are left with nothing.
How to Prevent Pig Butchering Scams:
- Avoid believing in financial schemes that promise high returns with no risk and no losses.
- Resist the allure of quick profits and high-stakes investments.
- Avoid sending money to strangers whenever possible; if unavoidable, exercise extreme caution.
- Enhance the security of your social media accounts to block suspicious messages from unknown sources.
https://wa.me/19166991690
The Surge in Financial Losses Highlights the Popularity of "Pig ButcheringScams”
This article delves into the widespread "Pig Butchering" scams that exploit sophisticated cryptocurrency investment platforms, where investors are lured with promises of substantial returns—only to discover their losses when they attempt to withdraw funds.
Courtney Nolan, a single mother from St. Louis with three daughters, reports losing over $5 million to such a scam. Despite her background in investment banking, Nolan had only recently started investing in cryptocurrency.
Erin West described a recent case: "A woman, a university professor whose husband died of COVID-19, began chatting online out of loneliness and ended up losing her retirement savings," West said. "Victims come from all walks of life—young professionals at the start of their careers, elderly individuals, and even people working in the financial services sector."
https://wa.me/19166991690
LongFin Cryptocurrency Stock Fraud
Cryptocurrency has rapidly become one of the most sought-after alternative investments in recent years. However, the lack of regulation in the cryptocurrency and blockchain sectors makes them highly speculative and risky. Unfortunately, the industry has been plagued by numerous fraudulent schemes.
In April, the U.S. Securities and Exchange Commission (SEC) filed a fraud complaint in Manhattan, leading to the freezing of $27 million in assets tied to LongFin, a company accused of illegally selling cryptocurrency stocks. Federal regulators alleged that LongFin insiders engaged in the sale of over $27 million in unregistered securities, marking a significant case of stock fraud.
https://wa.me/19166991690
Founder of “My Big Coin” Convicted of Cryptocurrency Fraud
Randall Crater, the 51-year-old founder of My Big Coin Pay, has been found guilty of cryptocurrency fraud. The U.S. Department of Justice detailed that Crater’s scheme involved deceiving investors by promoting and selling fraudulent virtual currency.
Operating from Las Vegas, Crater’s company falsely advertised "My Big Coins" as a legitimate digital currency. Between 2014 and 2017, Crater misrepresented the cryptocurrency’s value and backing, falsely claiming it was supported by $300 million in gold and other assets, and purportedly collaborated with Mastercard to facilitate transactions.
Through this deception, Crater embezzled over $6 million from investors and spent hundreds of thousands of dollars on jewelry, artwork, and antiques. Crater faces up to 20 years in prison on each of four wire fraud counts and up to 10 years on each of three money laundering counts.
https://wa.me/19166991690
Atlanta Film Producer Pleads Guilty to $2.5 Million Cryptocurrency Fraud
Ryan Felton, a film producer from Atlanta, has pleaded guilty to charges of wire fraud, securities fraud, and money laundering in connection with two fraudulent cryptocurrency investment schemes. The schemes collectively resulted in over $2.5 million in investor losses.
In 2017, Felton promoted an initial coin offering (ICO) for FLiK, a purported new streaming service he claimed would surpass Netflix. He pitched a unique cryptocurrency token during the ICO, alleging that a prominent Atlanta rapper and actor was a co-owner of FLiK, that the U.S. military had signed on to provide streaming services, and that FLiK was about to secure major licensing deals with film and television studios.
In reality, the rapper had no business involvement beyond endorsing marketing posts, FLiK had no military contract, and Felton had not engaged in any content licensing negotiations. Felton siphoned nearly $2.4 million from the ICO and trading market into his personal accounts, using the funds for a luxurious lifestyle that included a $1.5 million home, a $180,000 2007 Ferrari 599 GTB Fiorano Coupe, a $58,250 Chevrolet Tahoe, and nearly $30,000 in diamond jewelry.
Felton later sponsored a second ICO in 2018 for CoinSpark, a cryptocurrency exchange. He promised investors that SparkCoin would yield dividends equivalent to 25% of the exchange’s profits and that a major international accounting firm would audit CoinSpark’s financials quarterly—claims he never substantiated.
To generate interest in CoinSpark, Felton posed as a prospective investor under various pseudonyms across online forums and social media. After raising over $200,000 from the ICO, he announced that CoinSpark would not distribute dividends but would instead offer refunds. Despite this promise, Felton failed to honor any refund requests from investors.
https://wa.me/19166991690
Cryptocurrency Scams Surge in Australia
In the first five months of this year, Australian investors have fallen victim to scams amounting to over $113 million, prompting authorities to urge increased vigilance in cryptocurrency investments. Scammers have exploited celebrities, NFT projects, and journalists to defraud victims, intensifying the ongoing issues of fraud, phishing, fake currencies, and hacking that have plagued the sector since its inception.
The Federal Trade Commission reports that cryptocurrency-related scams now account for about a quarter of all scam losses nationwide, with an average loss of approximately $2,600 per incident. This troubling trend is expected to persist.
This surge in cryptocurrency fraud coincides with a period of market instability, including web3 and broader technology sectors, following a six-month downturn that erased roughly $1.6 trillion in asset value.
https://wa.me/19166991690
With an increase in fraud cases in California, a Bay Area investor has suffered a $1.2 million loss in a cryptocurrency scam.
The incident involved a man, referred to as CY to protect his identity, who was targeted by a scheme linked to Silicon Valley investments. The scam began in late October 2021 via the WhatsApp application, where a woman identifying herself as Jessica reached out to CY. Mistaking her for an old colleague, CY, who was emotionally vulnerable following his father's terminal illness, placed his trust in her.
Jessica initially contacted CY daily for a month. When his father’s condition worsened, she proposed using cryptocurrency to cover funeral expenses, a suggestion CY kept from his family.
Despite his financial and accounting background, CY started cautiously, investing between $5,000 and $10,000 to test the waters. He transferred funds from his bank to a reputable cryptocurrency exchange, but these funds were later redirected to a trading platform recommended by Jessica. Though the application seemed legitimate, CY eventually discovered it was fraudulent.
CY’s first significant loss of $500,000 occurred four days after his father’s death. Despite Jessica's assurances that the funds could be recovered, CY continued to believe the app was genuine. Encouraged by Jessica, he took out a $200,000 loan and borrowed an additional $100,000 from his brother-in-law, even though his personal account was already $65,000 in deficit.
On December 3rd, CY lost his entire investment portfolio, which included 30 years of savings and his daughter’s college fund, totaling $1.2 million. Following this catastrophic loss, the scammer vanished, taking CY’s money with her.
https://wa.me/19166991690
Cryptocurrency Romance Scam Costs Woman $8 Million
Divya (surname withheld for privacy) is among the largest victims of a “pig butchering scam”, a scheme that has seen an alarming rise. According to the FBI, over 20,000 Americans lost nearly $1 billion to romance scams last year, and Divya’s case stands out as one of the most significant.
Authorities estimate that the average loss per victim in such scams is approximately $180,000. However, Divya experienced an extraordinary loss of over $8 million in cryptocurrency, as revealed in a complaint against an alleged scammer.
This case underscores the sophistication and organization of the fraudsters, who managed to deceive Divya, a well-educated businesswoman in her twenties. Data shows that 67% of victims are unmarried women aged 25 to 40, most of whom are highly educated and technologically savvy.
Divya met her scammer, identified as "Jerry Bulasa," on Tinder and continued their interaction on WhatsApp. As their online relationship progressed, Bulasa convinced her to invest in what appeared to be a legitimate cryptocurrency platform, promising significant financial returns.
With some prior trading experience on Coinbase, Divya reviewed the platform and the investment strategy recommended by Bulasa. Everything seemed credible, and the site displayed apparent gains. The scammer manipulated the platform to show false profits and directed Divya to an app where she could track her investments, creating a convincing facade of success.
Problems arose when Divya attempted to withdraw her funds. She was informed she needed to pay taxes on her gains and was repeatedly asked for more money while being assured that her investments were safe.
Divya is not alone in her plight. Cynthia, a young Asian woman living in Canada, lost all her savings to a similar scam and shared her experience on YouTube, saying, "I never imagined becoming a scam victim, especially through online dating. Bad things happened, and I'm trying my best not to blame myself or fall into a spiral of self-loathing."
Cindy Tsai, an Asian American in Boston undergoing treatment for advanced cancer, claims she was supported by a scammer named "Jimmy" during her illness, only to be defrauded of $2.4 million in cryptocurrency through WhatsApp.
https://wa.me/19166991690
Scammers Exploit Deepfake of Elon Musk to Steal Cryptocurrency
A deepfake video featuring Elon Musk endorsing BitVex, a fraudulent cryptocurrency scheme, has gone viral online. This deepfake, created with artificial intelligence, marked a troubling development in cryptocurrency scams.
In the deceptive video, Musk falsely claimed that BitVex is a startup he founded to advance Bitcoin adoption, promising daily returns of 30% on any cryptocurrency investment within three months. The BitVex website falsely listed Musk as its CEO, alongside Binance CEO Changpeng Zhao and Ark Invest CEO Cathie Wood. The site allowed users to monitor statistics, deposit cryptocurrency, review investment plans, withdraw funds, and review terms of service—yet everything on the site is a scam.
BeepingComputer reported that the wallet addresses linked to the site received just over $1,500 in deposits, though the funds may be spread across multiple unknown accounts.
https://wa.me/19166991690
CEO of Titanium Blockchain, Guilty of Cryptocurrency Fraud Scheme
Titanium Blockchain Infrastructure Service Inc., a cryptocurrency investment platform that provides the cryptocurrency coin "BARs," is managed by Michael Alan Stollery.
In addition to failing to register TBIS's ICO with the U.S. Securities and Exchange Commission (SEC), Stollery also lacked a legitimate exemption from the SEC's registration requirements.
Stollery claimed to have authentic connections with the Federal Reserve and other prestigious companies while admitting to using fabricated client testimonials on TBIS's website. He also claimed to have utilized the funds for other purposes, such as condo payments in Hawaii.
Stollery will receive a sentence that might result in a 20-year prison term on November 18.
https://wa.me/19166991690
Inside the QAnon Crypto Scam That Cost People Millions and One Man His Life
Tom was closely monitoring two influential Telegram channels called Whiplash347 and PatriotQakes, which were actively promoting several tokens connected to the Stellar blockchain, the third-most prominent cryptocurrency network in the world after Bitcoin and Ethereum.
Tom was unaware that these influencers weren't just offering neutral investment advice, as they had claimed to be doing. They were associated with the tokens and brought in millions of dollars from investors like Tom.
According to the report, the WhipLash347 and Quantum Stellar Initiative Telegram channels collaborated to create a weekly curated list of cryptocurrency assets, claiming to have access to top-secret military intelligence and knowing which assets will thrive.
The investigation also claims that the leaders, WhipLash347 and PatriotQakes, fabricated information about cryptocurrency projects to mislead their tens of thousands of followers and capitalize on the general lack of faith in financial institutions and the media to support the assets they advocated.
According to estimations from Logically, there have been millions of dollars lost and tens of thousands of people could have been victims.
The dozens of tokens that these fraudsters produced over the previous year were given names that gave the impression that they were associated with actual businesses, such as the Sungold token, which the fraudsters purported was associated with a legitimate gold mine in Kazakhstan and a Russian corporation of the same name.
The influencers persuaded their followers to invest in these tokens and to hold onto them even when the price appeared to skyrocket by promising that they would soon be rewarded when a great financial reset occurs and the wealth of the world is redistributed, a prevalent belief among QAnon adherents.
But eventually, the tokens were moved to another wallet under the influencers' control, where they were either cashed out or exchanged for Bitcoin or Ethereum.
https://wa.me/19166991690
North and South Carolinians Have Lost Up to $75k to Cryptocurrency Fraud
Some Key Points:
The individual was taught how to start an account, get a loan, and then "invest" in cryptocurrencies after meeting "Vether Weber" on a dating app.
According to their first-hand report to the Better Business Bureau, the victim eventually lost $75,000 to the bitcoin fraudster.
The sum lost in that scam, which was reported in February, is the most money anybody in the Carolinas has ever lost to a cryptocurrency scheme, a kind of fraud that has grown significantly since the outbreak of the epidemic, says the authorities.
Between January 1, 2020 and mid-July of this year, the Better Business Bureau received reports of more than 1,680 cryptocurrency frauds nationwide.
From 2015 until the end of 2019, there were five bitcoin scams recorded in South Carolina.
Then from 2020 to mid-July of this year, there were 17 more cases with losses as large as $10,000.
One victim in Horry County's Carolina Forest lost $4,500 in fraud in November after being persuaded to pay bitcoin and gift cards to purchase office supplies as part of a work-from-home plan.
In September 2020, a resident of the Florence region paid a scammer $500 as part of a cryptocurrency pyramid scheme after being informed that they needed to find two more participants in order to be eligible to earn $4,000 from that "investment."
According to Parker, bitcoin fraud cost the nation $100 million in 2020.
According to 2021 research from the Better Business Bureau, males are more prone to fall for bitcoin scams than women, and younger age groups seem to be more vulnerable to them than older generations.
Across all age categories, 3.4 % of frauds used cryptocurrency payments.
Although cryptocurrency scams increased from the seventh to the second-most dangerous category between 2020 and 2021, online purchase scams still rank as the riskiest fraud customers encounter.
Social media influencers may also promote cryptocurrency frauds.
https://wa.me/19166991690
FBI warns of cryptocurrency scam in Northwest Arkansas
Some Key Points:
According to FBI agents in Arkansas, cybercriminals have started focusing on their victims in a scheme that threatens people’s home computers, cryptocurrencies, and a potential compromise of Social Security accounts.
The victim will get a pop-up on their computer telling them a virus has been detected and to call this number. If they call, they are usually told that their computer has been hit by viruses, or that they are victims of identity theft and need to be issued a new Social Security account.
Once the scammers have a victim on the line, they're told an official from Social Security will call them. Scammers will pretend to be the Social Security Administration by using a “spoofed” number and demanding that victims terminate all of their bank accounts and transfer all of their bitcoin.
"Several victims have called in to say they've lost hundreds of thousands of dollars of their life savings," Kevin Corlew, a supervisory special agent with the FBI, said, "They go to the bank and transfer their money to bitcoin and deposit it in a wallet. If we can be notified within a few hours, 24 hours at the most, there's a chance we can recover the money, but if too much time goes by it's almost impossible."
https://wa.me/19166991690
BitKRX- Fake South Korean Bitcoin Exchange
Some Key Points:
BitKRX posed as part of a legitimate cryptocurrency exchange business, real Korean Exchange(KRX). According to the company, they are a branch of the KRX, which was created by KOSDAQ, South Korean Exchange, and South Korean Stock Exchange.
Investors believed BitKRX to be a legitimate business and started using the platform for cryptocurrency exchanges. The scam was exposed in 2017 when investors started reporting that the Bitcoin they purchased on the platform vanished.
Investors can avoid this type of scam by researching and contacting the official company(in this case, KRX) if such a company exists.
https://wa.me/19166991690
Six People were Charged with Participating in Bitcoin and NFT Fraud Schemes that Generated Over $130 Million
Some Key Points:
Federal prosecutors have made it known that six individuals led a cryptocurrency fraud scheme that stole over 130 million dollars
Prosecutors say that the NFT scheme involved a group, the Baller Ape Club, that purported to offer NFTs in the form of cartoon depictions of apes.
Tuan and his accomplices laundered the cash by transferring it into cryptocurrencies.
Tuan, 26, of Vietnam and the rest of the Baller Ape Club were charged with wire fraud and international money laundering.
Tuan could spend up to 40 years in prison if found guilty.
In a different instance, Titanium Blockchain Infrastructure Services' founder and former CEO were accused of one count of securities fraud in relation to the company's ICO.
Federal prosecutors in California say that CEO Michael Alan Stollery fabricated documents describing the project's goals and falsely stated that his company had connections to the U.S. Federal Reserve Board and organizations like Apple, Disney, and Pfizer. Stollery can face charges up to 20 years if he’s convicted.
They were able to get $21 million from investors investing in the ICO.
In another case, California authorities accused David Saffron, from Las Vegas, of four counts of wire fraud, one count of obstructing justice, one count of conspiracy to commit wire fraud, and one count of conspiring to commit commodities fraud. If found guilty, Saffron may spend up to 115 years in prison.
Prosecutors claim that David Saffron raised roughly $12 million from investors through the use of his cryptocurrency investing platform Circle Society for a bogus cryptocurrency fund that pretended to operate on the futures and commodity markets.
In the fourth instance, Emerson Pires, Flavio Goncalves, and Joshua David Nicholas were charged with one count each of conspiring to commit securities fraud and conspiring to commit wire fraud. Pires and Goncalves were also accused of conspiring to engage in international money laundering. They were also involved in a crypto-Ponzi scheme that prosecutors claim defrauded investors out of about $100 million.
According to the prosecution, Pires, and Goncalves, the proprietors of the cryptocurrency investment platform EmpiresX, collaborated with Nicholas to promote the site by making fictitious promises about investor returns.
https://wa.me/19166991690
Siblings Involved in $124 Million Crypto Fraud Operation
Some Key Points:
The SEC charged John and JonAtina (Tina) Barksdale with conducting two unregistered fraudulent securities offerings by exploiting a digital token called "Ormeus Coin" to swindle thousands of retail investors out of more than $124 million.
They made Ormeus Coin available for purchase and sale to investors on several cryptocurrency trading platforms. Tina created advertising materials using social media while John Barksdale did roadshows all over the world. They also fraudulently stated that Ormeus Coin had a $250 million operation and made $5.4 million to $8 million in mining earnings every month and that it was backed by one of the biggest cryptocurrency mining companies in the world.
https://wa.me/19166991690

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