FBI warns of increased crypto related criminal activity during COVID-19 induced lockdowns

US law enforcement agency, the Federal Bureau of Investigation (FBI) is warning people to be brace for increased criminal activities involving the use cryptocurrencies. In the particular, the FBI is advising people to be on the lookout for an increase in cryptocurrency fraud schemes related to COVID-19

The call comes as the world is struggling to contain the COVID-19 virus with the drastic measures adopted seemingly failing to stop the growth rate of new infections. Some people have lost their jobs while others are now working from home. In the meantime schools and non-essential businesses remain shut.

The increased number of people confined to their home as a result has provided an opening for cyber criminals who seem to target everyone from the young to the elderly.

In a statement, the FBI said: “Developments in cryptocurrency technology and an increasing number of businesses accepting it as payment have driven the growing popularity and accessibility of cryptocurrency.

There are not only numerous virtual asset service providers online but also thousands of cryptocurrency kiosks located throughout the world which are exploited by criminals to facilitate their schemes. Many traditional financial crimes and money laundering schemes are now orchestrated via cryptocurrencies.”

Home confinement and government imposed lockdowns have inadvertently increased the appeal of cryptocurrencies. Proponents for the adoption of digital currencies have seized on this opportunity created by COVID-19 fallout to encourage greater use of these alternative currencies.

As blockchain advocates tout the potential of this technology in helping to ensure a