Florida Warns Residents of Auto Warranty Scams Asking for Crypto Payments

Authorities in Florida have warned residents about robocall scams that sell car warranties and ask consumers to pay using various methods, including cryptocurrencies.

In Florida’s consumer newsletter issued by the Florida Department of Agriculture and Consumer Services, the state said it had ordered phone companies to stop carrying traffic for a known robocall scam.

The robocall scam identified as Cox/Jones/Sumco Panama has made over eight billion illegal phone calls to US consumers since 2018. The FDAC claimed this necessitated stopping phone companies from making their calls.

But it added that the scammers may also use other means to reach consumers, such as sending fake “motor vehicle service notices” and “extended warranty letters” by email.

Regardless of the methods, FDACS identified five red flags that should tip off consumers to a scam. They include calls to immediate action, false claims, requests for personal information, scammers and asking for payments in gift cards or cryptocurrencies.

According to FDACS, “Only scammers will demand one of these types of payments, and once you send the money, you probably won’t get it back.”

Including cryptocurrencies as one of the payment methods preferred by fraudsters is another example of authorities identifying the increasing frequency of crypto-related fraud.

Crypto fraud is high

A Federal Trade Commission report on social media fraud identified crypto as one of the most common forms of fraud on these platforms.

“Reports make it clear that social media is a tool for fraudsters in investment scams, particularly those involving fake cryptocurrency investments – an area that has seen a massive increase in reports,” the report said.

US Congressman Brad Sherman has also called for strict regulation of the crypto sector, although he admitted that banning it is impossible.

However, it is still possible to track down crypto scammers and get your money back. Due to the public and immutable nature of the blockchain, several protocols and crypto-security schemes have been able to track funds.

But the chances of consumers not being able to get their money back appear to be higher.

For Be[In]Crypto’s Latest Bitcoin (BTC) Analysis, click here.

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