Amidst an era burgeoning with digital deceit, New York Attorney General Letitia James took decisive action against a widespread text message scam, filing a lawsuit aimed at recuperating stolen cryptocurrency from a scheme targeting individuals seeking remote employment. Not merely an attack on personal finances, this scheme exploited the trust of those navigating the uncertainties of a remote job landscape, as reported by the Attorney General’s Office.
Operating across the nation, scammers enticed victims with the allure of flexible, remote work, only to ensnare them into a business of purchasing and depositing stablecoins into the scammers digital wallets. According to Letitia James, “Scammers sent text messages to New Yorkers promising them good-paying, flexible jobs only to trick them into purchasing cryptocurrency and then stealing it from them.” The pursuit of justice led to a collaboration between the OAG, the U.S. Secret Service and, whose investigation uncovered over $2.2 million in cryptocurrency taken from the pockets of New Yorkers and others, now frozen for potential recovery.
In the fight against these high-tech hucksters, both the savvy and cooperation of the OAG and partnering agencies bore fruit. By effectively tracing the stolen crypto and freezing assets, authorities have opened a path to restitution for those hoodwinked by these modern-day swindlers. Secrets of the scam revealed an elaborate ruse, with victims lured by seemingly authentic online platforms and instructed to purchase stablecoins, and then transferring them into unhosted wallets which stand beyond the reach of typical regulatory safeguards. Collaborating with entities like Tether and Circle Internet Financial, the team of Justice Warriors managed to halt the malefactors in their digital tracks.
The swindle revolved around the promise of a remote job, requiring would-be employees to use their own funds to purchase and review products. Once the victim received enticing messages about a job, loaded with numerous benefits and flexible requirements, they were required to set up a wallet on a crypto platform and connect it to a deceptive “working account” for conducting reviews. But as detailed by the AG’s office, this so-called “working account” never existed, duping victims into transferring their stablecoins into abysses controlled by the scammers.
Elevating the art of service to adapt to the digital age, Attorney General James is seeking to become the first government regulator to notify scammers of litigation through a nonfungible token (NFT) deposited directly into the wallets used in the theft. With this innovative approach to legal notice, the story is not only of a crime but also of the inventive pushback in the name of justice. New Yorkers who may have fallen prey to this scam are encouraged to report their experiences directly to the Attorney General’s Office.
Assistant Attorneys General who handled this case, along with support staff from the Investor Protection Bureau, pieced together the digital evidence that brought the misdeeds to light. They, along with their colleagues from the U.S. Secret Service and the Queens County District Attorney’s Office, exemplify the commitment required to stave off the specter of cyber scams that have increasingly cast a shadow over the quest for legitimate employment in a remote work era.
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