The world of financial fraud is constantly evolving, and criminals are becoming increasingly sophisticated in their efforts to steal money from unsuspecting victims. Recently, the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, issued an alert urging financial institutions to be vigilant in detecting and preventing digital asset investment scams.
Often referred to as “cryptocurrency confidence scams,” “romance baiting” or “pig butchering” scams, these schemes use fake online relationships and promises of lucrative investment returns to convince victims to transfer funds, frequently into fraudulent cryptocurrency investments. According to the FBI Internet Crime Complaint Center (IC3), reported losses from cryptocurrency investment fraud grew from $907 million in 2021 to $7.2 billion in 2025.
How These Scams Work
Scammers commonly initiate contact through social media, dating apps, messaging platforms or text messages. They spend time building trust before introducing what appears to be a legitimate investment opportunity. Victims are often shown fabricated gains and encouraged to invest increasing amounts of money. Ultimately, when victims try to withdraw funds, they discover the investment was fake and their money is gone.
In some cases, scammers follow up with so-called “recovery services,” claiming they can help victims recover lost funds for an additional fee. These are often scams as well.
Red Flags to Watch For
Be cautious if someone:
- Contacts you unexpectedly through social media or text message.
- Promises guaranteed returns or unusually high profits.
- Pressures you to act quickly or keep the investment secret.
- Directs you to purchase cryptocurrency or wire funds internationally.
- Requests payment through cryptocurrency, gift cards or precious metals.
- Claims to represent a government agency and demands payment.
How to Protect Yourself
Before sending money or making an investment:
- Verify the identity of the person and the legitimacy of the investment opportunity.
- Be skeptical of investment opportunities promoted through online relationships.
- Research investment platforms using independent sources.
- Consult a trusted financial advisor before transferring funds.
- Never allow pressure or urgency to influence financial decisions.
If something feels suspicious, pause before acting and seek a second opinion.
We’re Here to Help
At Sanibel Captiva Community Bank, helping protect our customers from fraud is an important part of our commitment to our customers. If you receive an unusual request involving cryptocurrency, wire transfers, gift cards or other forms of payment, we encourage you to give us a call at 239-472-6100 before sending funds.
A few questions today could help prevent a significant financial loss tomorrow.
For additional information, visit FinCEN and the FBI Internet Crime Complaint Center (IC3).
