NY Attorney General files lawsuit to recoup $2.2M in crypto lost to job scam

New York Attorney General Letitia James has initiated legal action to recover more than $2 million in cryptocurrency swindled from victims who were duped into buying crypto under the false promise of securing remote work opportunities.

“Scammers sent text messages to New Yorkers promising them good-paying, flexible jobs only to trick them into purchasing cryptocurrency and then stealing it from them,” James said in a Jan. 9 statement.

Victims deceived into fake remote jobs as product reviewers

The scammers tricked victims with payment promises, telling them to create crypto accounts, deposit funds, and review products on fake websites that looked like legitimate brands.

Victims were told to keep a crypto balance that matches or exceeds the cost of the products they reviewed. They were promised “they were not purchasing the products” and that their money was only needed to help “legitimize” the data.

In return, they were assured they’d get their money back plus a commission, but they never received a cent.

The network of scammers would reach out to victims directly over text message. Source: Office of the New York State Attorney General

With assistance from the US Secret Service, James said that the stolen crypto has been frozen and urges people to be cautious of text messages from unknown senders claiming to offer jobs or other opportunities.

“Deceiving New Yorkers looking to take on remote work and earn money to support their families is cruel and unacceptable,” James said.

FBI’s warning last year about work-from-home job scams

It comes only months after the US Federal Bureau of Investigation (FBI) warned of a rise in work-from-home job advertisement scams in June 2024.

The FBI said that scammers were contacting potential victims with unsolicited calls or messages, offering a relatively simple job such as rating restaurants or “optimizing” a service by repeatedly clicking a button.

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Similarly, the FBI said that victims were instructed to make crypto payments to the fake employer to "unlock" more work, but the payments went directly to the scammer.

“You are directed to make cryptocurrency payments to your employer as part of a job,” the FBI said.

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