The Washoe County Sheriff’s Office is alerting the public to a recent increase in online “rug pull” scams, in which criminals disappear with investors’ money after recruiting victims to invest in legitimate-looking investments, frequently using cryptocurrency or digital tokens. Community members have reported losses in the hundreds of thousands of dollars, including scams conducted through platforms such as fake TikTok storefront accounts, Facebook Groups and Marketplace, and others.
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.
Key Indicators of the Scam:
- Promises of fast or guaranteed profits.
- Unknown or suspicious individuals 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 closing.
Protect Yourself:
- If it is too good to be true, it is. Be skeptical.
- Confirm and get proof of who is supporting the investment before sending money.
- Avoid rushing into investments; scammers often use pressure tactics like limited-time offers.
- Only invest money you can afford to lose.
- Consult someone you trust or a licensed financial advisor if unsure.
If You Think You’ve Been Scammed:
- 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).
The Washoe County Sheriff’s Office urges all aspiring business owners, investors, and community members to remain vigilant to protect their funds and livelihoods. 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.
The Washoe County Sheriff’s Office remains committed to protecting residents from fraud and encourages the public to remain vigilant.
