The Commodity Futures Trading Commission (CFTC) is warning of scams targeting remote job seekers. The regulator said Monday that people looking for work-at-home opportunities should be on the lookout for these deceptive schemes.
According to Melanie Devoe, director at the Office of Customer Education and Outreach (OCEO), summer job seekers interested in part-time online work may be particularly vulnerable to scams.
Work-from-home scam turns into a money-laundering nightmare
According to the CFTC, criminal organizations are actively recruiting networks of people to launder money. They move illicit funds between bank accounts, convert currencies and use blockchain to avoid detection by law enforcement.
Criminals often target unsuspecting people who may not realize they are connected to the crime. These victims may believe they are helping a friend, have a romantic interest or are simply fulfilling a professional obligation. However, both voluntary and unwitting participants face the same consequences, which can include criminal charges.
In two recent cases, the CFTC has cracked down on the activities of money mules. In one case, the CFTC accused Debiex of using well-known romantic fraud tactics to steal $2.3 million in customer funds intended for trading digital assets.
Other enforcement actions involved a California resident and his company. They were accused of running a complex romantic fraud, also known as a “pig slaughter scheme,” in which they defrauded dozens of investors of more than $1 million.
Pay particular attention to two things
The CFTC has warned potential victims to watch out for two major warning signs: “off-ramping” and “up-ramping” of crypto assets. In an off-ramp, criminals can send you cryptocurrencies and ask you to convert them to dollars, moving the cash through your bank account to another, essentially laundering their money.
On the other hand, on-ramping can involve criminals handing you cash to buy cryptocurrencies (like at a bitcoin kiosk) and then sending it to another walle, again using you to put their money into the crypto system. A third tactic, “smurfing,” involves receiving a large amount of cryptocurrency yourself, which can raise suspicion.
