Fake Crypto Coach Steals Over $30,000 From Conroe Family

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CONROE, Texas As you look to make some money in the new year, you might be curious to learn more about cryptocurrency. Although it is becoming increasingly popular, it can be confusing. This is partly why so many people fall victim to crypto fraud. A Conroe man said he did his homework and thought he was doing everything right, but still lost a lot of money. He called KPRC 2 Investigates for help.

How Social Media Influencers Target Curious Users

Nathan Sanders said he has been considering investing in crypto for a while now. He read the news and warnings and followed crypto influencers on social media. This is where it all began.

They were very helpful. It was like, I’m telling you, they weren’t arrogant or anything like that, Sanders explained.

Seeking to learn more about cryptocurrency, Sanders was thrilled when an investor he followed contacted him on Instagram.

And according to them, they made $500,000 of the $2.5 million in two and a half years, investing in Coinbase, Sanders said.

Conroe’s man falls victim to an elaborate cryptocurrency scheme. (Copyright 2021 by KPRC Click2Houston – All rights reserved.)

Sanders trusted Coinbase, one of the best crypto trading sites. But here’s the first red flag: the investor made him click on a secondary *Coinbase* site for trades.

So start small. They liked a small sum, took money from it, he explained. I was able to withdraw the money with a test. I’m skeptical at first. I’m like you just reached out to me, took the money out, could take it out, made another trade.

The ability to withdraw cash made Sanders feel secure, so he invested more. Then weeks later, Sanders had a big problem. He was a victim of identity theft with thieves using his information to take out loans in his name. He realized that a secondary crypto site might be the problem and wanted to withdraw his money. It was too late.

Just closed and gone, taken, as transferred to their account. We were talking about over, you know, $30,000 loss.

Sanders contacted Conroe police, the FBI and the Federal Trade Commission.

Conroe’s man falls victim to an elaborate cryptocurrency scheme. (Copyright 2021 by KPRC Click2Houston – All rights reserved.) This type of crypto fraud is called a pig butcher scheme

After a surge in cases like this, the FBI recently issued a warning calling it a pig butcher scheme – where someone appears to be a successful crypto trader wanting to help you make money.

Red flags in cases like this include:

An investment manager directs you to a secondary website that looks real but is fake.

They spend a lot of time getting to know you and making you feel comfortable.

You earn money and are able to withdraw the money, at the start. It builds trust.

These bogus sites might have malware to infect your computer and steal your passwords.

[Read more information from the FBI in this weeks Ask Amy.]

It’s kind of like the wild Wild West with cryptocurrency, Sanders said.

Coinbase told us that they warn customers to check secondary websites. They’re working with Sanders on his case. Coinbase sent us this warning about investment scams and they pointed out that they have extensive security measures in place to help combat this type of crime.

Conroe PD and the FBI told us they can’t comment since the investigation is ongoing. So far, Sanders hasn’t gotten his money back.

How to check if a website contains malicious links

If the crypto site has a secondary link, you can scan the site for malware using these free PC Risk or Site Check websites.

Anyone who believes they have been the victim of cryptocurrency fraud should file a report with the FBI’s Internet Crime Complaint Center at www.ic3.gov. They can also call the FBI field office in Houston at 713-693-5000.

Copyright 2023 by KPRC Click2Houston – All Rights Reserved.

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