The Washoe County Sheriff's Office is warning people about a recent increase in online "rug pull" scams.
These are scams in which criminals recruit victims to put money into what appear to be legitimate investments, frequently using cryptocurrency, before disappearing with the money.
Community members have reported losses in the hundreds of thousands of dollars, according to a release from the WCSO.
Scammers have been targeting victims through platforms such as fake TikTok storefront accounts, Facebook Groups and Marketplace, and others.
The Sheriff's Office provided a point-by-point breakdown of how the scam works.
- Scammers create an investment accessible through online profiles and payments.
- This investment is then promoted through email, social media, direct messages, online ads, and fake success stories.
- Victims are convinced this is a real investment opportunity and send money digitally or provide access to their online accounts.
- Scammers then shut down the operation once enough money has been collected, whether from a single individual or from multiple investors.
Here are some key things to look out for that might indicate you are dealing with a scam.
- Promises of fast or guaranteed profits.
- Unknown or suspicious individuals are behind the offer.
- Flashy marketing with little to no verifiable business information.
- Inability to access or withdraw your funds after investment.
- Online profiles and websites representing the business, investor, or scammer suddenly become unavailable or are closing.
The Sheriff's Office says there are several ways to protect yourself.
If something looks too good to be true, you should be skeptical. You should confirm and get proof of who is supporting the investment before sending money. Avoid rushing into investments, as scammers often use pressure tactics, like "limited time" offers. Only invest money you can afford to lose, and talk to someone you trust or a licensed financial advisor if you aren't sure of an opportunity.
The Sheriff's Office also has tips if you think you have been the victim of a scam.
- Stop sending money immediately.
- Stop communicating with the scammer.
- Save all communications, screenshots, wallet addresses, and transaction records.
- Contact your bank or credit card company right away, change passwords, and disconnect any recurring payments to the investment.
- Report the incident to the local law enforcement and the Federal Trade Commission (FTC).
If you receive a suspicious message or investment invitation, report it immediately through the Washoe County Sheriff’s Office Fraud Awareness Hub at washoesheriff.com/fraud.
