An 84-year-old Washington resident lost more than $400,000 to a scam after being told they were being investigated by the Federal Trade Commission for child pornography and money laundering — and that their bank accounts were at risk of seizure.
The case was part of a three-day scam last month in Clallam County, Washington, in which four residents lost more than $673,000 to fraudsters posing as Microsoft, the Federal Trade Commission and crypto exchange Coinbase, according to the local sheriff’s office.
Tactics were very different. One victim lost $3,500 in Apple gift cards to a fraudulent Microsoft tech support agent. Another lost $50,000 after clicking on a malicious email link that gave fraudsters access to their financial accounts. A third lost $200,000 after being forced to download a fake app by a Coinbase impersonator. As for the 84-year-old Washingtonian, he turned nearly $420,000 into gold following the scammer’s instructions, then gave it to a stranger who happened to cross his path.
Although they appear to be part of the private sector, the tactics used in these scams are common and can be seen across state lines. Clallam County Undersheriff Lorraine Shore called these fraudsters fraudsters who use fear, trust and urgency. The sheriff’s office was clear on one point: legitimate companies and government agencies will never ask you to avoid law enforcement or buy gold, gift cards or crypto. They will also not send someone to your home to collect valuables.
If you receive a suspicious call asking for something like this, hang up and verify the claim directly with the agency involved before taking any action. If you believe you have been targeted, contact your financial institution immediately. Then report the incident to local law enforcement and file a complaint with the FBI’s Internet Crime Complaint Center.
Some current scams to watch out for
A long crypto trap
A North Carolina man is still waiting to recoup most of what he lost in a “pig kill” scam, which is the name for schemes in which scammers spend months developing a relationship with their victim before depositing the counterfeit money. Wesley Marley told WRAL News he lost more than $753,000, and only learned the extent of it after seeing his name in federal court.
Federal agents told Marley she could recover about $630,000 of her missing money, but more than a year after she reported the fraud, she’s still waiting. Investigators say the delay is partly down to the way these scams work: fraudsters often combine multiple victims’ funds together instead of keeping them separate, making it difficult to determine whose money it is.
If someone you met online directs a friendly relationship to crypto investing, consider it a warning sign. These scams are especially effective because they are built on weeks or months of trust, not a single pitch of high pressure.
Immigration “miracle” promises
Thousands of immigrants may have been defrauded by a Washington lawyer who promised “miracles” while allegedly submitting fake immigrant visa applications without their knowledge. According to lawsuits and an ethics investigation covered by the Associated Press, Alexandra Lozano’s firm allegedly hired workers without proper paperwork and copied client signatures on applications she never saw.
A former client told The Associated Press that he paid $30,000 and trusted Lozano with his family, then included his mother in the decision to remove him without marrying a U.S. citizen. Lozano’s company closed this month; he surrendered his law license but denies any wrongdoing. The bar says his signature appears on more than 53,000 pending cases.
If you, a friend or loved one is pursuing an immigration case, verify the attorney’s license status directly with the appropriate state bar association and ask to review all documents before they are submitted. Never sign blank forms or papers you haven’t read, no matter how much you trust the person handling your case.
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The most common types of scams you should be aware of
Fraudsters are always upping their game, coming up with new and (their) fun ways to trick their targets. AI-powered scams are one example of this; technology is used to reach a large number of people with increasingly convincing techniques
But some tricks never go out of style. Most scams fall into a few common patterns, and many long-standing schemes are still a threat today. They have recently evolved to better fit today’s digital landscape
- Fraudster scams: Fraudsters often pose as trusted figures such as government agencies, banks, employers and even friends or family to pressure victims into sending money or sharing personal information.
- Phishing and fraud: These scams use emails, texts or phone calls that appear to be from legitimate organizations. The goal is to trick you into clicking a malicious link, downloading malware or providing sensitive information
- Online shopping scams: Fraudsters can create fake online stores or listings with hard-to-find items at unusually low prices. After paying for an article, what you end up getting may be fake – or it may never arrive in the first place
- Investment scams: This type of scam often comes with promises of high returns from crypto, forex or other “exclusive” opportunities. Many involve long-term make-up schemes where victims are encouraged to invest more money over time before losing it all
- Scams in love:Some scammers try to get into your pocket by heart. They build relationships with you on dating apps or social media, then convince you to give up money and assets by creating contingency or investment opportunities.
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What to do if you are a victim – or the victim of a scam
No one is immune to fraud or embezzlement, but a few consistent practices can reduce their risk and the damage they cause.
First, be suspicious of unsolicited messages, especially those that create fear or urgency. This could look like an email from your bank threatening to close your account, a text from an online marketplace saying you’ll lose your rebate or a call from the IRS saying they’ll report you to the authorities unless you “act now.”
Scammers like to use this type of language because it puts you in a position, which they expect will move you to action.
Always confirm any requests from the organization by checking their official phone numbers, email or website. And don’t click on any links, download email attachments or reply to messages you suspect are fraudulent. A legitimate organization will not pressure you into immediate action or secrecy
Now, if you’ve already sent financial information or money to someone you suspect is a scammer, you’ll need to take a few steps to protect your data and possibly get your money back. Contact your bank, credit card company or payment platform immediately and try to stop or reverse the transaction. Be sure to change any passwords and enable multi-factor authentication to protect your accounts as well.
Reporting a scam can also help protect others. You can file a report with the Federal Trade Commission and local authorities at the nearest police department or sheriff’s office. Victims of identity theft should also consider temporarily freezing their credit
Finally, review your financial statements and credit reports regularly, keep your software up to date and limit how much personal information you share online. Fraudsters often rely on publicly available information to make their schemes more believable
