Kauai Police issue warning about cryptocurrency scammers coercing fines while posing as law enforcement officers
Law enforcement officials on the Hawaiian island of Kauai have issued a cautionary alert regarding individuals pretending to be law enforcement in order to scam cryptocurrency users.
The scammers use deceitful tactics, contacting their victims and falsely asserting that there is an arrest warrant out for them. They then go on to threaten the victims with arrest unless they pay a fine in cryptocurrency.
Assistant Chief Kalani Ke of the Kauai Police advised that any calls of this nature should be viewed with suspicion, and individuals should refrain from sharing their credit card details or any personal financial information.
In an attempt to convince their victims, the scammers manipulate the caller ID to display a different number on the victim’s phone. By using spoofed numbers, the victims are tricked into believing that the call is coming from a government agency, even though it is not. The scammers also use actual information about the victims to appear more legitimate.
The police department has stressed that law enforcement agencies never request payments over the phone. To prevent falling victim to such scams, Kauai police have advised locals to avoid answering calls from unknown numbers and to refrain from sharing sensitive personal information. The alert also recommended hanging up if the caller claims to have information that needs to be confirmed.
It is important to note that fines are only issued after an individual has appeared in court, and government-imposed fines cannot be paid in cryptocurrency. Chief Kalan emphasized the importance of reporting such incidents to the Kaua‘i Police Department and reminded the public that law enforcement agencies will never demand payment over the phone.
This warning coincides with changes in Hawaii’s cryptocurrency sector, as the Department of Commerce and Consumer Affairs has exempted crypto businesses from state money transmitter laws. While cryptocurrency businesses operate as unregulated entities, they are still required to comply with federal regulations from the Financial Crimes Enforcement Network and the Securities and Exchange Commission.
