The U.S. Secret Service is increasing its international operations to combat the surge in cryptocurrency scams. These crimes are becoming a greater danger to Americans and our entire financial system. Spearheading this foray is Kali Smith, who leads the Secret Service’s cryptocurrency strategy. Her team’s mission was to train foreign law enforcement and prosecutors to investigate and prosecute digital financial crimes.
Secret Service’s Global Investigative Operations Center (GIOC), which is at the forefront of failing digital financial crime. Yet their expertise is critical, especially in this ongoing fight. The team has already conducted workshops in over 60 countries, equipping local authorities with the necessary tools to unmask and disrupt these sophisticated schemes.
Fraud connected to digital currencies has recently made up 70% of the total losses from internet-related crime in the United States. In 2024 so far, Americans have lost a record $9.3 billion to crypto scams. Older adults are especially at risk, with losses in this age group amounting to almost $2.8 billion.
"They think they can use Bitcoin and be safe. But that isn’t the case." - Kali Smith
The Secret Service has had a number of record breaking recoveries. One recent example was $225 million in USDT (aka Tether) associated with romance-investment scams. These scammers lure victims in with the promises of companionship, romance and financial security. Once they’re hooked, these fraudsters bleed their life savings through fraudulent investment schemes.
The spike in crypto crime has increased violent crime as well. In New York, regulators criminally indicted two prominent investors. Specifically, they kidnapped and tortured a former close friend of theirs to force him to give them access to his digital wallet. Earlier this year in Connecticut, six men were charged for illegally abducting the parents of a teenage hacker. Three weeks before, that hacker had absconded with a jaw-dropping $245 million in Bitcoin.
The agency's work extends beyond U.S. borders. The U.S. Secret Service’s New York field office keeps an eye on Bermuda. This little-known British overseas territory has more recently positioned itself as a home for digital-asset firms by rolling out an expansive crypto framework. One of the regulators’ analysts discovered that one account registered to a stolen Nigerian passport facilitated nearly $4.1 million over almost 6,000 transactions.
"Technologies and financial services are fantastic for economic growth, but they can also be exploited." - Andrew Murdoch
"Alongside the benefits, you need strong investigative powers to deal with abuse under the law." - Andrew Murdoch
Because of the global nature of these crimes, international cooperation is essential. In one case, a teenager in Idaho sent a nude photo to a stranger, who then demanded $300 under threat of sending the image to his relatives. In collaboration with their international law enforcement partners, British officers arrested the suspected extortionist when he landed in Guildford, England.
"We’ve been following the money for 160 years." - Patrick Freaney
