The Federal Bureau of Investigation (FBI) recently issued warnings to crypto enthusiasts over increasing scams. According to the FBI, the new scam currently trending is an investment tool targeting unsuspecting victims.

The law enforcement agency has revealed that the scam has contributed to more than $70 million in monetary loss.

FBI Issues Warning Over Latest Scam

The FBI released the latest investor scam alert last Thursday, warning crypto wallet holders of a possible scam targeted at them. According to the FBI, American citizens are advised to be careful of fraudulent activities.

Furthermore, the new cryptocurrency scam is an investment strategy dubbed “Liquidity Mining.” Scammers are looking to exploit victims of their crypto tokens through fake investment tools.

However, liquidity mining is a legitimate process where investors stake their tokens and earn passive income. Scammers will attempt to use the liquidity mining process to steal people’s funds through illegal means.

Scammers will attempt to convince unsuspecting victims to connect their crypto wallets to malicious applications. The FBI disclosed that scammers would then wipe out the contents of the victim’s wallets without notification.

In addition, scammers usually approach their potential victims via unsolicited direct messages on social media. After convincing the victims to move their funds to the liquidity mining platform, the stealing begins.

Moreover, the FBI has consistently called to the attention of potential victims the tactics adopted by fraudsters. For weeks or months, the scammers take their time building a relationship with victims.

After gaining the trust of their victims, they could proceed to provide them with a crash course in cryptocurrency. Finally, the victims are convinced to invest in liquidity mining after receiving a massive daily return.

Cryptocurrency Scams on the Rise

Despite the threat of crypto winter, most scam victims still find it convenient to invest in offerings. Crooks are finding it possible to make huge gains from frauds and other phony investment schemes.

This is just the latest example of the extent criminals can go to make money, be it in digital assets or fiat currencies.

The blockchain analysis company Chainalysis reported that crypto-related crime was rising at the beginning of the year. Data from Chainalysis shows that last year’s 79% is the highest scam rate recorded in the crypto space.

Hackers and fraudsters shipped about $14 billion to illegal crypto wallets, and the crime rate keeps increasing. However, transaction volumes far outweigh illicit activities despite the high crime rate.

It is worth noting that as more transactions are done using cryptocurrency, crooks will likely follow where the money is.

Over the past few days, the FBI issued another alert about a possible heist involving crypto exchanges. Crooks planned to convince users to download some apps and transfer tokens to their wallets. A new wave of digital fraud is ongoing, and law enforcement agencies have pledged to tackle it.

The Feds have made some arrests, with possible manhunts for those involved. The crime medium continues to change, but the victims and scammers remain the same.