The U.S. Attorney’s Office in Chicago has seized approximately $1.4 million in Tether (USDT) in connection with an alleged tech support scam targeting primarily elderly victims across the United States.
The U.S. Attorney’s Office in Chicago announced the seizure of approximately $1.4 million in Tether (USDT), a cryptocurrency pegged to the U.S. dollar, in connection with an alleged tech support scam targeting primarily elderly victims across the United States. The seizure was one of the first times the U.S. government recovered USDT from a non-hosted cryptocurrency wallet and was accomplished through a court-approved warrant.
According to Acting U.S. Attorney Morris Pasqual and FBI Special Agent in Charge Robert W. “Wes” Wheeler, Jr., the alleged scam included a computer pop-up informing the victim that his or her computer had been compromised. The pop-up instructed victims to contact Microsoft or Apple at the phone number provided, depending on their operating system. The perpetrators, posing as technical support staff, called the victims over the phone and informed them that their bank accounts had also been hacked.
The scammer then routed the call to another person, posing as an employee of the victim’s bank’s fraud department. They convinced victims to convert money from traditional bank accounts into cryptocurrency to keep them “safe” from hackers. The funds were then transferred to a non-hosted virtual currency wallet controlled by the perpetrator.
According to the FBI’s most recent Internet Crime Report, tech support fraud is estimated to result in over $924 million in losses in 2023. The U.S. Attorney’s Office acknowledged Tether’s assistance in returning seized assets to victims of the fraud.
The seizure was a joint effort involving the U.S. Attorney’s Office in Chicago, the FBI’s Chicago Field Office, the Justice Department’s Computer Crime and Intellectual Property Division, and the National Cryptocurrency Enforcement Team. United States Attorney Steven J. Dollear is representing the government in this case.
As authorities continue to investigate allegations of fraud, the seizure serves as a warning to fraudsters targeting vulnerable populations and demonstrates the U.S. government’s commitment to combating cryptocurrency-related crime. It also highlights the importance of educating the general public, especially older adults, about the potential for fraud and what to look out for when dealing with unsolicited technical support communications.
The growing number of cryptocurrency scams targeting seniors is a worrying trend. Fraudsters often take advantage of older people’s unfamiliarity with technology and cryptocurrency and manipulate them into transferring funds to fraudulent wallets. Educating older adults about the risks associated with unsolicited tech support calls and the importance of verifying the legitimacy of financial transactions is critical to preventing these scams.
Additionally, this case highlights the importance of cooperation between law enforcement, financial institutions, and cryptocurrency platforms to combat fraud. Tether’s support in seizing fraudulent funds demonstrates how important collaboration between the public and private sectors is in identifying and preventing financial crime.
As the use of cryptocurrency continues to grow, it is essential that regulators and law enforcement agencies adapt their strategies to effectively investigate and prosecute cryptocurrency-related crimes. The successful seizure of Tether funds in this case demonstrates the U.S. government’s growing capabilities to track and recover illicit cryptocurrency proceeds.
Going forward, it is important for authorities to raise awareness of cryptocurrency fraud, especially among vulnerable groups, and work closely with the cryptocurrency industry to develop strong security measures and regulations to prevent such fraudulent activities. By taking a proactive approach to combating cryptocurrency fraud, we can create a safer financial ecosystem for all users, regardless of age or technical skill.
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