ATLANTA – IRS encourages taxpayers to stay alert for investment and crypto fraud schemes this April.
Release:
ATLANTA – During April, federal, state, financial institutions and other organizations will be recognizing Financial Literacy Month. The IRS Criminal Investigation (IRS‑CI) Atlanta Field Office is using this month to urge taxpayers to stay alert to financial investment and cryptocurrency fraud schemes.
“Financial Literacy Month is a great time to remind taxpayers to stay sharp, stay informed, and not to let crypto or investment scammers catch them off guard,” said Special Agent in Charge Demetrius Hardeman, IRS Criminal Investigation, Atlanta Field Office. “IRS‑CI special agents work every day protecting consumers by investigating, stopping, and holding those responsible for committing fraud and other financial scams designed to steal their money.”
Financial investment fraud occurs when scammers deceive individuals or organizations into handing over money for fake, misleading, or grossly misrepresented investment opportunities. Common types of investment fraud schemes include Ponzi and pyramid schemes, cryptocurrency investment fraud and romance-linked investment fraud. These schemes continue well beyond filing season and increasingly target older adults, online investors, job seekers, and individuals looking for relationships, costing victims millions of dollars each year.
The Ponzi scheme is a fraudulent investment operation where the organizer promises high returns but pays earlier investors using money from newer investors, not from legitimate business profits. A pyramid scheme is a fraudulent operation in which participants earn money mainly by recruiting new members, rather than by selling a genuine product or service. The pig‑butchering investment fraud typically incorporates elements of romance fraud which are long‑term financial fraud schemes, often involving cryptocurrency, where scammers build a relationship with a victim over weeks or months to gain trust before stealing large sums of money. The crypto‑investment schemes involve fraudulent opportunities marketed as legitimate cryptocurrency investments.
Taxpayers can protect themselves from these scams by using the following tips:
- Ponzi Schemes
- Verify the investment and the person offering it.
- Be skeptical of any investment promising guaranteed returns.
- Check whether they are registered with regulators (SEC, state securities board)
- Pyramid Schemes
- Avoid any program where income depends mainly on recruitment.
- Check whether most revenue comes from product sales to real customers.
- Pig‑Butchering and Romance Investment Scams
- Do not invest through platforms someone you met online directs you to.
- Slow down. Pig‑butchering scams rely on building trust over time.
- Verify any opportunity independently (not with links they provide).
- Never transfer crypto or funds based on an online acquaintance’s recommendation.
- Never mix romance and financial transactions with someone you haven’t met.
- Be cautious of anyone who avoids video calls or in‑person meetings.
- Talk to a trusted friend, because scams thrive in secrecy.
Special agents and staff at the IRS-CI Atlanta Field Office are dedicated to safeguarding taxpayers from financial fraud. To report fraud, please visit IRS.gov or contact the Atlanta Field Office at atlantafieldoffice@ci.irs.gov.
