The U.S. Secret Service has significantly ramped up its international efforts to combat the growing threat of cryptocurrency scams, recovering nearly $400 million in fraudulent digital assets over the past decade.
Central to this initiative is the agency’s Global Investigative Operations Centre (GIOC), which collaborates with law enforcement in more than 60 countries to train officials on tracking and dismantling crypto fraud networks.
Crypto scams often start with seemingly innocent messages and friendly conversations that lure victims to fake investment platforms. These sites mimic legitimate exchanges, complete with professional designs, charts, and customer support. Victims initially see small returns, encouraging them to invest more, even borrowing money, before the platform suddenly disappears with their funds.
Jamie Lam, an investigative analyst with the Secret Service, explained that scammers frequently use stolen photos to build trust, but these images often belong to unrelated individuals in different countries. Investigators trace these scams by analyzing domain registrations, crypto wallet addresses, and IP data, sometimes exploiting mistakes like VPN leaks. Lam emphasized that patience and digital tools are key to uncovering these fraud operations.
The GIOC uses a combination of subpoenas, open-source intelligence, and data analysis to track illicit funds. Kali Smith, the agency’s crypto strategy lead, highlighted that training is offered free to countries with weak enforcement or popular residency programs, helping them recognize and respond to crypto fraud effectively.
One notable case involved an Idaho teenager blackmailed after sending a nude photo to a scammer. The Secret Service traced payments through a money mule to a wallet linked to a Nigerian passport, leading to an arrest in England. Such cases highlight the real-world harm caused by crypto fraud, which resulted in $9.3 billion in losses for Americans in 2024, disproportionately affecting older adults.
Notably, Australia’s financial watchdog, the Australian Securities and Investments Commission (ASIC), has imposed a 10-year ban on Glenda Maree Rogan, a former financial adviser, after alleging she channelled $9.6 million of her clients’ funds into a cryptocurrency scam.
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