Fraud & Cybersecurity Awareness

You should be aware of an online investment scam involving digital assets that, in at least one recent case, led to a substantial financial loss for someone. As interest in digital currencies continues to rise, fraudulent schemes targeting prospective investors are becoming increasingly common.

Knowing how these scams typically operate can help individuals recognize red flags and avoid financial harm.

Overview of the Investment Scam

These scams may appear to be a legitimate cryptocurrency investment opportunity.  For example, you may be asked to send multiple wire transfers to an entity presented as a digital asset investment firm we'll call “ChainCore.” The funds you send would be directed to an online exchange account held at a financial institution located on the West Coast.

The opportunity would be promoted through a professional-looking website that falsely represented the investment platform and its services.

Throughout the process, you would be provided with dashboards and account statements that appeared to show steady growth and positive returns on your investment. This false display of earnings is a common tactic used by scammers to build confidence and encourage additional deposits.

Convinced the investment was performing well, you might be persuaded to keep sending more money to "invest."  

But later, when you try to withdraw the supposed "earnings," you would be informed that substantial upfront fees and taxes have to be paid before any funds could be released. At that point, it might become clear that the investment platform was fraudulent.

Such funds may be totally unrecoverable and may involve scammers operating in overseas jurisdictions that do not cooperate with US law enforcement and lack extradition treaties.  

Why Cryptocurrency Investment Scams Are Increasing

Cryptocurrency scams have grown rapidly in recent years due to several factors:

• Cryptocurrency transactions can be difficult to trace or reverse
• Fraudsters often create professional-looking websites and dashboards
• Scammers may impersonate legitimate investment firms or platforms
• Victims are often shown fake profits or account balances to encourage larger deposits

These scams frequently involve wire transfers, cryptocurrency exchanges, or payment apps, which can make recovering funds extremely challenging once the money is sent.

Warning Signs of a Cryptocurrency Investment Scam

Consumers should be cautious if they encounter any of the following red flags:

• Promises of guaranteed or unusually high investment returns
• Requests to send funds via wire transfer or cryptocurrency
• Investment platforms requiring fees before withdrawing funds
• Pressure to invest quickly
• Websites with unfamiliar or suspicious domain names
• Individuals communicating primarily through messaging apps or social media

If something seems too good to be true, it likely is.

What To Do If You Suspect Cryptocurrency Fraud

If you believe you may be the victim of an investment scam or financial fraud:

1. Stop sending money immediately
2. Contact your bank right away
3. Report the incident to local law enforcement
4. File a complaint with the Internet Crime Complaint Center (IC3) at
   https://www.ic3.gov

Reporting scams helps authorities track fraudulent activity and may help prevent others from becoming victims.

Protecting Yourself From Cryptocurrency Investment Scams

To protect yourself and your finances:

• Research investment companies thoroughly before sending money
• Verify websites and investment platforms independently
• Be skeptical of unsolicited investment opportunities
• Never send money to someone you have only communicated with online
• Consult a trusted financial professional before making large investments

Fidelity Bank’s Commitment to Fraud Awareness

Fidelity Bank is committed to helping customers and communities stay informed about emerging financial scams, cryptocurrency fraud, and online investment schemes. Education and awareness are key to protecting yourself from criminals who attempt to exploit new technologies and digital financial platforms.

If you ever have concerns about a financial transaction or potential fraud, contact your financial institution immediately.

Staying informed is one of the most effective ways to safeguard your finances.