FBI warns of new cryptocurrency fraud linked to overseas job scams

The United States Federal Bureau of Investigation (FBI) has warned of a new form of fraud involving overseas job vacancies, where criminals lure people into criminal schemes tied to investments in digital assets.

NEW: The #FBI warns of false job advertisements linked to labor trafficking at Southeast Asia-based scam compounds where victims are held against their will, intimidated & forced to commit international cryptocurrency investment fraud schemes. Learn more: https://t.co/4haIGGhZiy pic.twitter.com/OceyPR3iIB

— FBI Las Vegas (@FBILasVegas) May 22, 2023

According to the FBI, victims were held against their will, intimidated, and forced to participate in international cryptocurrency investment fraud schemes.

The perpetrators primarily target Asian countries. They offer various vacancies, including tech-support specialists, call-centre operators and administrators, with the possibility of relocating abroad.

“Criminals use various means, including confiscation of passports and travel documents, threats and the use of violence. They saddle people with debts under the pretext of paying for travel, lodging and meals, exploiting their fear of law enforcement,” the warning says.

The FBI advised vigilance and careful vetting of employers. Victims of such fraud were urged to report it to the appropriate authorities.

Earlier, CertiK analysts said that during April crypto projects lost $103.7 million due to exploits, hacks and fraud. The total losses since the start of 2023 amounted to $429.7 million.

In May, the National Police of Ukraine, together with the FBI blocked nine cryptocurrency exchanges that were used to launder criminal funds.

As reported in August 2022, the Bureau described the most frequently encountered vulnerabilities used by cybercriminals to attack DeFi platforms.