Lone Tree police warn of Bitcoin scheme that scammed residents out of thousands

DENVER (KDVR) — Police in Lone Tree are warning of a scam involving Bitcoin that is targeting the city’s residents, which several residents have already lost tens of thousands of dollars to.

The police department explained how the scam works in a post on Facebook. According to police, the scammers contact residents pretending to be from a government agency, utility company, bank or law enforcement.

The scammers contact Lone Tree residents via phone call, text and email, and sometimes pop-ups on computers. They claim that the victims either owe money, have a security breach or are under investigation, and say the victim must make a payment immediately.

“Victims report that the scammers sound very believable and often create a sense of urgency. Remember, if someone asks you to withdraw money from your bank and deposit it elsewhere, that’s a major red flag,” the police department said.

The scammers demand payment via Bitcoin ATMs, cryptocurrency transfers or gift cards.

Watch out for scammers

Police said residents should know that no legitimate business, government agency or other entity will demand Bitcoin or cryptocurrency as payment.

Any requests for urgent action or secrecy, or threats of arrest, should be considered red flags of a scam, police said. The department noted that once money is sent through Bitcoin, it is “nearly impossible to recover.”

Victims reported that the scammers were very believable and convincing, and often created a sense of urgency.

How to protect yourself from possible scams

Police said several residents have fallen for the scam and lost tens of thousands of dollars, and listed a few ways that residents can protect themselves.

If you get a suspicious call, police said to hang up the phone or delete suspicious messages immediately. Police said you can verify directly with the agency or company using official phone numbers and websites, and emphasized that you should never send money or cryptocurrency to someone you don’t know.

Police said the scam is targeting residents in Lone Tree. Residents should report suspicious calls or messages to the Lone Tree Police Department at 303-799-0533 or make a report online.