What It Means for Cryptocurrency Investors
Fraud in the digital currency world is a constant threat, with thieves continuously adapting their strategies in an attempt to stay ahead of investigators. For the everyday digital currency investor, this news may not mean much; Ortiz and his fellow criminals targeted leaders in the digital currency world with large cryptocurrency holdings. However, there is reason to believe that other criminals could engage in a similar practice as well, targeting new victims. Part of the pushback against SIM hijacking is likely to come from mobile service providers, but cryptocurrency investors can also take steps to prevent these thefts as well. In addition to following standard practices for maintaining digital wallet security, investors should be aware of changes taking place to their non-digital currency accounts as well. Beware of changes to passwords that appear randomly, for instance, and recognize that these may be telltale signs of SIM hijacking.
The FBI released a public service announcement in March 2018 indicating steps that criminals have taken to engage in what it termed "tech support fraud." Specifically, the agency indicated that "criminals pose as virtual currency support. Victims contact fraudulent virtual currency support numbers usually located via open source searches. The fraudulent support asks for access to the victim's virtual currency wallet and transfers the victim's virtual currency to another wallet for temporary holding during maintenance. The virtual currency is never returned to the victim, and the criminal ceases all communication." As this and other related fraud methods suggest, cryptocurrency investors should always be aware of the possibility of impending theft.
Investing in cryptocurrencies and Initial Coin Offerings ("ICOs") is highly risky and speculative, and this article is not a recommendation by Investopedia or the writer to invest in cryptocurrencies or ICOs. Since each individual's situation is unique, a qualified professional should always be consulted before making any financial decisions. Investopedia makes no representations or warranties as to the accuracy or timeliness of the information contained herein. As of the date this article was written, the author owns bitcoin and ripple.