Crypto: A Deeper Dive

Cryptocurrency Scams: How They Work and How to Protect Yourself

Cryptocurrency started as a revolutionary way to send money without banks or middlemen. Bitcoin, Ethereum, and other digital coins promised security and freedom through blockchain technology. But with that promise came new dangers. Criminals quickly realized that crypto’s irreversible transactions, pseudonymous wallets, and international reach created the perfect recipe for scams.

As we’ve been discussing in blog posts over the past several weeks, here in Idaho, those risks are no longer theoretical. Meridian Police recently warned residents about printed letters showing up in mailboxes demanding cryptocurrency payments. Seniors across the Treasure Valley have been tricked into feeding thousands of dollars into Bitcoin ATMs at the direction of fraudsters. And in one case, a man was extradited from the UK to Idaho to face millions of dollars in cyber-fraud charges. These are not distant problems—they are happening right here in our community.

At 208Geek, we help our clients navigate the world of technology safely. That means going beyond headlines and digging into the mechanics of how scams actually work, why they succeed, and how you can guard yourself.

Why Crypto Creates Opportunity for Scammers

Criminals love cryptocurrency for a few simple reasons:

• Irreversible Transfers – Once you send Bitcoin, Ethereum, or any other coin, there’s no “chargeback” like with a credit card. The money is gone.

• Pseudonymity – Wallet addresses don’t come with names or Social Security numbers. A scammer can move millions through dozens of wallets with little accountability.

• Global Reach – Crypto ignores borders. A criminal in another country can target someone in Idaho as easily as a neighbor down the street.

• Hype Factor – Crypto still feels like a ticket to fast money. Scammers exploit the excitement and confusion to lure victims with “guaranteed” returns.

Breaking Down Common Crypto Scams

Let’s take a deeper look at the major categories of scams now circulating. Each has its own playbook—but they all end the same way: with victims drained of money and criminals walking away richer.

Pig-Butchering Scams

This term may sound odd, but it describes the process perfectly. Scammers build a relationship over weeks or months—often on dating apps, social platforms, or even through cold texts. Once trust is established, the “friend” or “romantic partner” introduces a crypto investment opportunity. At first, small investments appear to pay off. But when the victim finally puts in a large sum, the scammer disappears.

Crypto ATM Scams

A fast-growing scheme in Idaho involves fraudsters instructing victims to deposit cash into local Bitcoin ATMs. These machines instantly convert cash to crypto, sending it to the scammer’s wallet. Some seniors in our area almost lost tens of thousands before vigilant store clerks stepped in.

Investment Bots and Arbitrage Scams

YouTube and TikTok are flooded with videos advertising “trading bots” that promise risk-free profits. In reality, these bots are programmed to drain wallets. One academic study traced more than $15 million stolen from victims who believed these lies.

Giveaway and Doubling Scams

On social media (including YouTube), scammers pose as celebrities or crypto companies, promising to “double” your coins if you send some first. They stream fake “live events” and use deepfake audio or video to add legitimacy. No one ever receives a payout.

Phishing and Fake Exchanges

Some scammers simply copy legitimate exchange websites and trick users into entering login credentials. Others create fake apps or wallets. Once you sign in, they steal everything in your account.

Big Ponzi Schemes

Beyond individual scams, entire “currencies” have been structured as frauds. OneCoin and Bitconnect looked legitimate for years, pulling in billions. Both collapsed when investigators revealed they had no true blockchain, only a revolving door of investor funds.

How Scammers Reel Victims In

Crypto scams succeed not because people are careless, but because scammers are professionals at psychological manipulation. They use:

• Urgency – “Act now or miss out.”

• Authority – Posing as IRS agents, police, or corporate reps.

• Trust Building – Long conversations, fake relationships, or credible-looking websites.

• Greed and Fear – Promises of high returns or threats of arrest if payment isn’t made.

  
  

Step by step, victims are nudged from small, low-risk transactions into life-changing losses. By the time the deception is clear, the money has already vanished across blockchain ledgers into untraceable mixers or offshore exchanges.

Real Cases in Idaho

The headlines in our state show how serious this problem has become:

• Meridian Letters – Residents reported receiving threatening letters demanding payment in cryptocurrency. Police issued warnings to remain vigilant. According to KTVB,  the scammers use urgent and alarmist language, such as "YOU'VE BEEN HACKED" and "we are not playing games." The letters also include references to hacking and spyware materials like Pegasus and Cobalt Strike.

• ATM Fraud Surge – Seniors across Idaho nearly lost over $30,000 in a single week before store employees intervened. A gas station attendant at a Boise Stinker store helped two seniors avoid being scammed for nearly $30k in such a  scam.

• 
  

• Extradition for Cyber Fraud – A Nigerian man was extradited from the UK to Idaho to face charges tied to a $2 million cyber-fraud operation. Reports reveal he relied on  sextortion and romance scams to defraud Idahoans.

  
  

These examples highlight the scale of the problem: scams that may feel far-fetched are playing out in our neighborhoods.

How to Recognize Red Flags

Here are the clearest signs of a crypto scam:

• Promises of guaranteed or outsized returns

• Requests for payment through crypto ATMs or gift cards

• Unsolicited messages or offers from strangers

• Pressure to act immediately

• Confusing or unverified platforms for investing

• Poor grammar, inconsistent communication, or overseas contact information
  

If you encounter any of these signals, stop. Never transfer funds until you’ve independently verified the request with a trusted party.

What to Do If You’re Targeted or Victimized

If you’ve been contacted by a suspected scammer—or worse, if you’ve already lost funds—take these steps:

• Stop Sending Money – Don’t believe promises that “just one more payment” will unlock your account.

• Document Everything – Save messages, receipts, wallet addresses, and phone numbers.

• Report Immediately – Contact local police, the FBI’s Internet Crime Complaint Center (IC3), or the Federal Trade Commission.

• Alert Your Exchange – If funds went through a platform like Coinbase or Binance, file a report right away.

• Seek IT Support – An expert can help secure your devices, scan for malware, and strengthen your defenses.

  
  

Even if funds cannot be recovered, your action can prevent others from falling victim.

Protecting Yourself Going Forward

Vigilance and prevention are the only true defenses against crypto scams. Here are best practices everyone should adopt:

• Use only trusted, regulated exchanges for purchases or trades.

• Keep most funds in cold wallets rather than online accounts.

• Turn on two-factor authentication and never reuse passwords.

• void clicking on links in unsolicited texts or emails.

• Verify identities independently—call a company directly before trusting an email or message.

• Educate family members, especially seniors, who may be targeted more often.

• Remember: if an opportunity feels “too good to be true,” it probably is.

Cryptocurrency has real potential, but it has also become one of the most powerful tools for criminals in Idaho and worldwide. From pig-butchering scams to fake investment bots, scammers continue to evolve. The only real defense is awareness, skepticism, and preparation.

At 208Geek, we stay on top of the latest threats, so our clients don’t have to. Whether you’re an individual concerned about online safety or a business looking to train your staff, we’re here to help you stay secure.

If you’ve received a suspicious message, been pressured to use a crypto ATM, or just want to make sure your systems are safe, call 208Geek today. Together, we can outsmart scammers and protect what matters most.

About 208Geek in Meridian, Idaho

Owner/Operator Jacob Van Vliet began building and repairing computer systems for friends and family out of his home in 2001. The increasing demand for computer repair led to the opening of 208Geek in the Fall of 2005, with the vision of providing outstanding service and peace of mind. Jacob, along with his team, including his wife, Brittany, is committed to delivering unparalleled, friendly, and professional service with a 100% satisfaction guarantee. In 2024, son, Johnny, joined the team and helped expand into Moscow, where he serves the computer and IT-related needs of students and staff at the University of Idaho. The 208Geek team has been named “Idaho’s Best” for IT and computer repair for the past six consecutive years. We would love the opportunity to work with you so we can show you why!