On April 8th, at a seminar held at the Flushing Library in Queens, New York, District Attorney Melinda Katz discussed the possibility of recovering money lost to cryptocurrency scams. According to Jonathan Scharf, Deputy Director of the Major Economic Crimes Bureau in Queens, he mentioned that it is very difficult to recover funds once scammed but the chances of retrieval increase if the incident is reported promptly.
The seminar titled “Digital Defense: Protecting Our Community from Cryptocurrency Scams” hosted by District Attorney Katz aimed to educate residents of Queens about a sophisticated online cryptocurrency scam targeting them known as “pig slaughtering schemes.” She emphasized the importance of never giving money to strangers as an effective way to prevent falling victim to scams.
Deputy Director Scharf highlighted the characteristics of digital currency scams, stating that they operate entirely online without any real names or identity information (referred to as “pseudonymous”), lack customer service or complaint channels, and once a transaction is made, recovering stolen funds becomes extremely challenging.
Scammers often utilize social platforms such as Facebook, Tinder, and Bumble to establish long-term relationships (friendship, love, or investment advice) with victims, eventually introducing investment advice and claiming to be “financial advisors.” Their fraudulent tactics include fake websites, investment platforms, and transaction data.
Initially, victims may see slight returns to gain their trust but are ultimately persuaded to invest more funds or even take out loans. When victims attempt to withdraw their investments, scammers either disappear or create obstacles.
Scammers use encrypted communication tools like WhatsApp, Telegram, and WeChat to avoid tracking. Fraudulent websites and applications are designed deceptively, appearing authentic and sometimes even available on platforms like App Store or Google Play. They may also prompt victims to install remote control software (such as AnyDesk) to gain complete control over their devices. Scharf cautioned against installing AnyDesk software, as it poses significant risks by allowing others to control your phone and computer.
In addition to these practices, scammers recruit individuals through advertisements (in Chinese newspapers, WeChat groups) to act as “money mules” to launder illicit funds. Those involved in money laundering may face criminal charges, frozen bank accounts, and asset confiscation. Many of these scams are linked to transnational criminal organizations and human trafficking.
To safeguard against digital currency scams, Scharf advised the public to be cautious of high-return opportunities that seem too good to be true, avoid downloading apps or clicking links from strangers, refrain from authorizing remote control software access to their devices, verify financial service companies through the New York State Department of Financial Services (DFS) website, avoid downloading investment applications from unverified cryptocurrency investment websites, refrain from investing in cryptocurrency based on advice from strangers, avoid investing more money to recover investments from cryptocurrency websites, and report scams immediately as early intervention increases the chance of fund recovery.
If individuals suspect they have fallen victim to a scam, they are encouraged to report to the following entities: Queens District Attorney’s Office ([email protected]), FBI Internet Crime Complaint Center (IC3), Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and cryptocurrency platforms like Coinbase, Gemini, and Kraken.