Picture this: It’s a sunny Thursday morning in the Grand Valley and you’re happily sipping a cup of coffee when you receive a call from the Mesa County Sheriff’s Office. The person on the phone says you have a warrant out for your arrest and the only way to pay your bond is through bitcoin. The person points you to a Bitcoin ATM nearby and tells you that you have 24 hours to pay or you’re going to be arrested. Your sunny morning is suddenly filled with stress and concern.

Let’s hit pause on this scenario and review the interaction step by step. 

First and foremost, there are very few instances where an investigator with the Mesa County Sheriff’s Office will call you regarding a warrant. If you have not had any law enforcement contact within the last six months, it is highly unlikely that anyone from law enforcement or the judicial system will have any reason to contact you. If you do have a warrant for your arrest, we typically just come and arrest you.

Next, the Mesa County Sheriff's Office, other law enforcement agencies, and government agencies will NEVER call you on the phone demanding payment of fines or warrants using gift cards, wire transfers, cryptocurrency like Bitcoin, or any form of electronic currency. These agencies will also NEVER contact you by phone to request that you go to your bank to withdraw funds from your account. If this is asked of you, it's a scam!

If you are unsure if the phone call you are on is a scam, request the contact information of the individual you are speaking with and hang up. Then look up the phone number of whatever company or agency the individual claims to be from and call that number to verify if the legitimate company or agency is trying to contact you. If they are, the legitimate company or agency will help you from there. 

So, why are scammers requesting cryptocurrency like Bitcoin, gift cards, wire transfers, and other forms of electronic currency? These types of payments are extremely hard to refund, can be accessed from anywhere, and do not require in-person interactions as the currency is not physical.

Bitcoin, along with all other cryptocurrency types, is minimally regulated by the Federal Government and is not controlled or stored by banks. Unlike credit cards where fraudulent transactions can be canceled or reversed via consumer protections in place, cryptocurrency is most often sent from one person’s cryptocurrency wallet to another person’s cryptocurrency wallet. These types of transactions allow for extreme anonymity and there’s a very high chance that the transaction cannot be reversed. Investigators may be able to track the transaction and identify the owner of the account the cryptocurrency was sent to, but they cannot stop or reverse the transaction.

While Bitcoin is the most well recognized name for cryptocurrency, other names may include Ether, Tether, Litecoin, Ethereum, BNB, USD Coin, Dogecoin, and Toncoin. There are around 9000 types of cryptocurrencies. Cryptocurrency is not a commonly recognized currency and is accepted as payment in very rare instances.

Think of it this way: if you can’t pay with it at the grocery store, you shouldn’t be paying with it or sending it to anyone.

And why are gift cards treacherous? Scammers will ask you to send photos of the gift card number and pin via an electronic communication platform, like email or text. As soon as they have that information, they can take the gift card and use it as they please. Gift cards can be difficult to trace, so when in doubt, do not purchase gift cards.

Stay tuned for Parts 2 and 3 in our series, “The Truth About Cryptocurrency: Avoiding Scams and Heartbreak.”

If you believe you are the victim of a financial scam, call the Mesa County Sheriff's Office at 970-242-6707.