The citizens of Vermont have been recently cautioned by the state’s financial regulatory agency, the Department of Financial Regulation (DFR), regarding the increasing occurrence of crypto investment scams on widely used social media platforms.

The Vermont Department of Financial Regulation (DFR) attributes the surge in crypto scams to the crafty con artists who employ increasingly intricate and tailored strategies, utilizing layers of deception to lure victims.

As a result, Vermont residents have been urged to promptly report any instances of fraud to aid in minimizing financial losses and facilitating the identification and pursuit of the perpetrators.

Naum Lantsman, a 74-year-old individual, fell victim to a crypto scam conducted through two prominent social media platforms, resulting in the loss of his life savings, amounting to $340,000, just last month.

Related Reading: Britain Rejects Proposal To Regulate Crypto As Gambling

Lantsman found himself drawn towards cryptocurrency investments as his life took an unexpected turn due to the impact of the pandemic. While casually scrolling through his social media feed, Naum Lantsman stumbled upon a post from a company named SpireBit.

His initial encounter with the crypto scammer took place on Instagram, which the Federal Trade Commission (FTC) has identified as the leading platform associated with crypto fraud.

Intrigued, he decided to engage with the content, initiating a line of communication with the crypto scammer. The post portrayed SpireBit as an “international financial broker” engaged in cryptocurrency transactions, enticing Naum into the scam.

Following the initial encounter, a company representative who called himself Pavel reached out on the messaging app Telegram. He wrote in Russian, Lantsman’s native language.

Pavel and Lantsman started conversing regularly, discussing family matters and their shared background in the former Soviet Union. All these interactions occurred over Telegram.

Over several days, the SpireBit executive exerted pressure on him, eventually persuading Lantsman to make investments against his will. Starting with $500, Lantsman eventually invested his entire life savings, totaling over $340,000, into the SpireBit account.

Lantsman’s account showed that the money was being deposited and growing. However, the charts displaying earnings growth were entirely fake.

When he attempted to withdraw money from his account, SpireBit presented a forged document, purportedly from Barclays, the British bank, demanding a 2% fee as a “security measure.” It was later confirmed by a Barclays representative that the document was forged.

Though Lantsman was aware of crypto scams from previous accounts, he said he never anticipated falling prey to such criminal activities himself.

The Vermont Department of Financial Regulation (DFR) highlights that scammers employ ever-evolving tactics, such as forging bank documents and engaging in friendly conversations, to carry out their fraudulent schemes.

To combat these tactics, vigilance and thorough background checks are essential. Investors are advised to do extensive research before investing money in digital asset platforms.

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