Nebraska Attorney General Mike Hilgers issued a consumer warning last week following an alarming rise in cryptocurrency scams across the state, many of which are intertwined with online romance fraud. The alert, disseminated by the Nebraska Attorney General’s Office, comes in response to multiple reports of residents losing six-figure amounts after falling victim to elaborate schemes involving fraudulent crypto investment platforms.

The Attorney General’s Office detailed how these scams are structured: “Cryptocurrency scammers are encouraging Nebraskans to make small initial investments through fake trading platforms and apps.” The Office added:

The scammers then create fake bank statements and documents to convince victims that their investment is growing. Afterward, scammers ask victims to increase their investments to chase even higher returns.

In several instances, scammers first initiate contact by forming fake romantic relationships online. Once a sense of trust is established, they transition the conversation to investments, targeting victims—particularly seniors—with promises of high returns and little risk.

Hilgers warned that these schemes can cause irreparable damage: “These scammers are devastating Nebraskans and, at times, stealing someone’s entire retirement or life savings. I urge Nebraskans to take caution with crypto investments that promise high returns with little risk.” The alert offers practical advice to avoid falling prey to such fraud:

To avoid crypto scams, do not send money to someone online that you have not met in person. If someone asks you to discuss your investment on an encrypted app such as Telegram or Whatsapp, or an unfamiliar website, it is likely a scam.

“Crypto scammers will likely promise rewards that sound too good to be true with little risk,” the alert notes. Anyone who suspects they’ve been targeted should immediately contact their financial institution or cryptocurrency exchange to attempt to recover funds and report the incident to the FBI’s Internet Crime Complaint Center. While the warning highlights real dangers, supporters of digital assets maintain that responsible use and education can enable consumers to safely engage with cryptocurrency.

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