Fake crypto coins in the name of well-known figures have popped up in recent weeks. Over the weekend, scammers pretending to be Saudi Arabia’s Crown Prince Mohammed bin Salman launched a fraudulent crypto coin, sharing it on a fake account on X.
And last month, Ivanka Trump’s name was used for a fake crypto coin, forcing her to issue a disclosure that she has “no involvement” with the coin.
As scams become harder to detect, here are some of the steps to take if you fall victim to a fake coin or one is made in your name without your permission:
- Report the activity to federal agencies including the Federal Trade Commission (FTC), the Commodity Futures Trading Commission (CFTC), the Securities and Exchange Commission (SEC), the Internet Crime Complaint Center (IC3). Forms can be found here.
- Report to crypto exchange company: If you sent money via an exchange company, the FTC recommends you report the scam there as well.
- Report to law enforcement: People can also file a report with local law enforcement or financial crime units like the Department of Justice Financial Fraud Unit or your local Secret Service field office.
- Seek legal action: Cryptocurrency payments do not come with the legal protections that credit or debit cards come with, making legal action tricky. There are, however, crypto recovery lawyers who may be able to help recover losses if they were caused by a company’s negligence.
Things to remember, according to the FTC:
- Crypto payments are often not reversible.
- No legitimate business will demand users pay in cryptocurrency or contact you with an unexpected text, email or social media message.
- Scammers often try to gain contact through online dating platforms, job websites or pretend to be new or established businesses.
- Scammers will impersonate well-known people, but also companies.
