Law enforcement officials on the island of Kauai in Hawaii are cautioning the public about a new scam targeting cryptocurrency users. In a recent alert, authorities warned that scammers are pretending to be law enforcement officers and using deceptive tactics to trick victims.
The scammers contact their victims and falsely claim that there is an arrest warrant issued against them. They then intimidate the victims by threatening arrest unless they pay a fine in cryptocurrency. Kauai Police Assistant Chief Kalani Ke advised the public to be wary of such calls and refrain from giving out credit card details or personal financial information.
To make their scheme more convincing, scammers manipulate caller IDs to display a government agency’s number on the victim’s phone. They also use real information about the victims to appear more legitimate. The police have not disclosed how the scammers spoof the numbers or acquire victim information.
Law enforcement agencies never demand payment over the phone, and the Kauai police have urged residents to ignore calls from unknown numbers and avoid sharing sensitive information. If someone asks you to confirm information and you feel suspicious, it’s best to hang up.
Authorities emphasized that fines are only issued after appearing in court, and government-imposed fines cannot be paid in cryptocurrency. Chief Kalan stressed the importance of reporting such incidents to the Kaua‘i Police Department and reminded the public that law enforcement agencies will never demand payment over the phone.
This warning comes as Hawaii is making changes to its cryptocurrency sector. The Department of Commerce and Consumer Affairs in the state has exempted crypto businesses from complying with money transmitter laws, allowing them to operate as unregulated businesses. However, they must still adhere to federal regulations from agencies like the Financial Crimes Enforcement Network and the Securities and Exchange Commission.
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