Hawaii’s Kauai Police warn of crypto scammers extorting fines as law enforcement

Law enforcement officials on the Hawaiian island of Kauai have issued a warning against scammers posing as law enforcement to defraud cryptocurrency users.

According to the latest warning, scammers are using deceptive tactics, calling victims and falsely claiming arrest warrants have been issued against them.

Victims are then intimidated with threats of arrest unless they pay a fine in cryptocurrency.

“Such calls should be treated with skepticism. Avoid revealing your credit card information or any personal financial information,” Kauai Police Deputy Chief Kalani Ke said.

To entice victims, scammers even change the caller ID and change the number displayed on the victim’s phone. Thanks to spoofed numbers, victims are tricked into believing that the call is coming from a government agency, when it actually is.

Scammers also use real information about victims to appear trustworthy.

Details of how the numbers were spoofed or how information was obtained about the victims were not disclosed.

The police department emphasized that law enforcement never requested any payment via phone call.

To prevent such scams, Kauai police urged locals to avoid answering calls from unknown numbers. They also asked that sensitive personal information not be shared.

“If they say they have the information and you just need to confirm it, don’t wait, hang up,” the warning said.

Additionally, officials emphasized that in cases where government fines cannot be paid with cryptocurrency, fines will not be imposed unless the person appears in court.

“It is very important that you report these types of incidents to the Kaua‘i Police Department and remember that law enforcement will not call you to demand payment of any kind,” Chief Kalan added.

The warning comes as Hawaii makes some changes to its cryptocurrency industry. The island state’s Department of Commerce and Consumer Affairs has ruled that crypto businesses do not have to comply with the state’s money transfer laws.

Therefore, cryptocurrency businesses currently operate as unregulated businesses. However, they must comply with federal regulations such as the Financial Crimes Enforcement Network and the Securities and Exchange Commission.