Local Bitcoin Scams On The Rise
LOS ANGELES (CBSLA) — Bitcoin buyers beware – scammers are looking to take advantage of people who are unfamiliar with the cryptocurrency.
A man and a woman dubbed the "Discount Bitcoin Bandits" have been charged with stealing thousands of dollars from people trying to buy bitcoin, the Los Angeles County District Attorney's Office said Thursday. Prosecutors say some of those people were outright robbed.
Precious Lanay Fitzgerald, 27, was charged with several counts of robbery, child abuse, and grand theft, along with an allegation that she has previously been convicted of assault with a deadly weapon. Her co-defendant Lawillie Joshua Hall, 22, was also charged with second-degree robbery, and both face gun allegations.
Prosecutors say the pair stole just over $87,000 from six people between October and February by using online notices and communications advertising the sale of discount bitcoins, then stealing the victims' payments.
Prosecutors say Fitzgerald met with some prospective customers and forcefully took the cash they brought to purchase the bitcoins. In other instances, she took a money transfer, but never provided the promised bitcoin to the buyer, according to the District Attorney's Office.
The digital currency has often been used in ransomware hacks because it is untraceable, which lends itself to another scam the Manhattan Beach police warned its residents about Friday.
The department says potential victims receive a letter in the mail, threatening to release embarrassing information for public humiliation if the recipient does not pay up using bitcoin. The letter includes instructions on how to buy bitcoin and how to set up a wallet in order to send money.
Manhattan Beach police says they have no known cases, but warned residents that the letter is a scam, and to not send money or respond to such letters.
(© Copyright 2018 CBS Broadcasting Inc. All Rights Reserved. City News Service contributed to this report.)
