Scammers on Truth Social con victim out of $500,000 with Cryptocurrency trading scam

Alexandru_BD

A recent investigation by Gizmodo, launched through a Freedom of Information Act (FOIA) request, revealed a concerning trend: Truth Social users are increasingly falling victim to scams that have cost some victims staggering amounts. In particular, one Minnesota user lost over $500,000 in a cryptocurrency trading scam, and this case highlights how fraudsters exploit social media to manipulate and deceive victims.

As Gizmodo reported, "Through a Freedom of Information Act request, Gizmodo obtained a slew of fraud complaints filed by users on the right-wing social media site Truth Social. Many of these complaints are virtually identical to scams that have proliferated across other platforms." This investigation shows that Truth Social, like other platforms, has become fertile ground for scammers who prey on unsuspecting users, often with promises of investment opportunities or urgent security threats.

Case in point: A Minnesota victim’s $500,000 loss

The story of a Minnesota resident exemplifies the scale and sophistication of these scams. This user, in their early 60s, encountered a woman on Truth Social who claimed to be a cryptocurrency trader. She introduced him to what appeared to be a reputable trading platform based in the UK called “CoinCorner.” Lured by her apparent expertise and reassured by the platform’s name, the victim transferred his funds to what he believed was a legitimate cryptocurrency exchange. However, this was only the beginning of a long string of financial manipulations that would ultimately cost him half a million dollars.

The scam played out in multiple stages, each adding another layer of deception:

Initial "security threat" and fee

When the victim attempted to withdraw his funds, he was told there was a “security risk” with his bank account due to an extra digit in their bank account number. To get this flag cleared, he was required to pay a fee, which he happily did.

Additional “taxes” and minimum balance requirements

As he complied, the scammers introduced additional fees, citing taxes and a need to “top up” his account to meet a minimum balance requirement for check issuance. Each fee promised to be the last, giving the victim hope that his funds would finally be released.

Fake company representatives and ongoing communication

The scam’s complexity increased as the victim was introduced to an “accountant” supposedly working for CoinCorner in Oregon, who reassured him that his funds were secure but temporarily held up by new requirements. In total, he paid a $10,000 wire transfer fee, a $15,000 “cost of transfer” fee, a $25,000 activation fee, and was ultimately asked for a $70,000 “authentication transfer PIN” fee. Each demand came with the assurance that no more fees would be necessary.

Direct contact from “CoinCorner” founders

To keep the victim invested, the scammers went as far as to introduce a man claiming to be a founder of CoinCorner. Using texts and calls, they maintained frequent contact, reinforcing the illusion of legitimacy and persuading him to continue paying.

Why Truth Social has cecome a target for scammers

This case is far from unique, as the Gizmodo investigation has shown. Truth Social’s appeal to certain demographics, combined with developing content moderation policies, has made it a prime target for fraud. Here are some of the reasons why scams are proliferating on the platform:

• Demographics: Truth Social’s user base often includes senior adults who may be less familiar with the tactics used in online scams, particularly in areas like cryptocurrency trading. Scammers are aware of this and often tailor their pitches to suit an audience that may be more trusting of authoritative-sounding financial advice.
• Trust-building dynamics: Truth Social fosters a sense of community among like-minded users, which scammers exploit by blending into groups and posing as “experts” or advisors. As Gizmodo noted, the complaints filed by Truth Social users are “virtually identical to scams that have proliferated across other platforms,” illustrating how scammers use similar scripts to gain victims’ trust.
• Moderation and oversight gaps: According to the Gizmodo report, Truth Social is still developing its content moderation and security measures, making it more vulnerable to fraudulent activity. Scammers often exploit newer platforms with fewer automated controls, knowing they are less likely to be caught early.

Recognizing the red flags

The Minnesota victim’s experience offers valuable lessons in identifying the warning signs of online financial scams:

1. Pressure to act quickly: Scammers thrive on urgency. In this case, the victim was told there was a security threat that needed to be resolved immediately, leading him to pay an initial “security fee.” Any unexpected urgency related to finances is a major red flag.
2. Unusual payment requests: Reputable companies don’t request multiple fees for “withdrawal” or “authentication” purposes. If asked to pay repeatedly to access your funds, it’s almost certainly a scam.
3. Complicated chains of contacts and verifications: Introducing multiple “representatives” to resolve a single issue is another common scam tactic, as it creates the illusion of legitimacy. Real companies will not assign multiple employees to handle a simple transaction or request.
4. Repeated “final fees”: Advance-fee scams frequently promise that each payment will be the last necessary step. In reality, these demands only continue until the victim runs out of funds or catches on.

Protecting yourself from social media scams

With the rise in social media-driven scams, especially on platforms like Truth Social, it’s essential to take precautions:

• Verify companies independently: Always research any company or individual offering investment opportunities. Legitimate companies have contact information and credentials that can be cross-checked. Avoid relying on social media profiles alone for credibility.
• Avoid upfront payments: Real companies do not demand payments to unlock, transfer, or verify funds. If you’re asked for multiple fees, especially for vague purposes like “authentication,” it’s likely fraudulent.
• Report suspicious activity: If you believe you’ve encountered a scam, report it to the platform and to the Federal Trade Commission (FTC) or local anti-fraud authority if you do not live in the US. This helps create an official record and alerts authorities to emerging scams on new platforms.
• Check messages, ads or social network posts with Scamio: Send Scamio text conversations, e-mails or screenshots and it will help you identify the red flags that can possibly lead you to getting scammed.