The FBI is warning LinkedIn users of rampant fraud on the platform

An FBI special agent recently sat down for an interview to warn LinkedIn users of the potential threat of cryptocurrency investment fraud running rampant on the platform.

Special agent Sean Ragan, who oversees the FBI field offices in San Francisco and Sacramento, recently sat down for an exclusive interview with CNBC. He spoke about the “significant threat” of fraudulent scams that go down on the platform.

The majority of scams on LinkedIn tend to revolve around cryptocurrency. A fraudster disguised as a business professional will strike up a conversation with an individual on the platform. After gaining the person’s trust, the fraudster then starts suggesting “investment” advice.

“This type of fraudulent activity is significant, and there are many potential victims, and there are many past and current victims,” said Ragan.

READ MORE: FBI lists notorious crypto fraudster on its 10 most-wanted list

Typically, the fraudster will convince their target to start investing money into crypto legitimately. They’ll suggest known sites like Crypto.com and even give advice on what kind of cryptocurrency to invest in.

After some time, the fraudster will convince that target to move their money to another website, this time run by the fraudster. And once that’s done, the target’s account is drained and it’s likely too late to stop.

LinkedIn has published advice on how to spot investment and financial fraud on its platform.

The company's warning comes as an FBI agent told CNBC last week that cryptocurrency investment schemes have been running rampant on the platform.https://t.co/gvBbcC3REe pic.twitter.com/bLcuQUlMBS

— Catalin Cimpanu (@campuscodi) June 21, 2022

In response to CNBC, LinkedIn confirmed that it has had a fraud problem on the platform recently. The platform removed more than 32 million fake accounts in 2021. And its automated defenses stopped more than 70 million scam attempts.

But obviously, this is not enough. Several LinkedIn users reported losing hundreds of thousands of dollars to scams like this, according to the publication. One victim even lost up to $1.6 million.

At the end of the day, it’s up to users to stay vigilant to avoid losing their savings to scams. If you’re not educated and familiar with cryptocurrency, it’s probably best to not take advice from strangers online. Even if they are masquerading as business professionals on LinkedIn.

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