Greg's Corner

The Rise of Crypto Scams and the Human Toll

By Greg Collier

An elderly woman from Oklahoma recently found herself entangled in a devastating scam, one that underscores a grim truth, scammers don’t discriminate. They target anyone, regardless of age, intelligence, or life circumstances. The scheme revolved around cryptocurrency, a growing area of concern in the world of financial fraud.

It began innocuously, as so many scams do, with an email. The message announced that a Bitcoin transaction had been finalized. Confused and alarmed, the woman, battling both Parkinson’s and Multiple Myeloma, called the provided number to dispute the transaction. That call marked the start of a harrowing ordeal.

Over the course of five hours, a scammer posing as a federal agent convinced her that her identity had been stolen. The alleged agent assured her that the only way to protect her money was to withdraw her savings and deposit it into a secure Bitcoin ATM. She was instructed to tell no one, not even her family, under the pretense that the situation required utmost secrecy.

The woman complied, withdrawing $20,000, from the bank. Under the scammer’s guidance, she then drove nearly an hour to deposit the cash into a Bitcoin ATM located in a liquor store. Only after completing the transaction did the gravity of the situation dawn on her. At that moment, she realized she had been deceived.

The impact of such scams goes beyond financial loss. They leave victims feeling ashamed and questioning their judgment. This particular case highlights a cruel irony. Even those who are well-informed about fraud can fall victim. The woman’s family, who had educated themselves on scams, never imagined they would face such a scenario.

Scammers are master manipulators. They exploit trust, fear, and even illness to carry out their schemes. For this family, the emotional toll has been immense, compounding the stress of existing health battles. The realization that their loved one was preyed upon so ruthlessly is a painful one.

This case is not unique. Reports from the Federal Trade Commission reveal a staggering rise in cryptocurrency-related scams. In 2023 alone, victims lost over $1.4 billion to such schemes. By the first nine months of 2024, losses had already surpassed $1 billion. These figures illustrate the evolving sophistication of scammers and the urgent need for greater awareness and preventative measures.

One of the most important lessons from this story is that anyone can fall for a scam. Scammers don’t care about who you are or what challenges you face. They are adept at creating scenarios that seem plausible and urgent, drawing victims into their web. Whether young or old, tech-savvy or not, everyone is a potential target.

While the loss of $20,000 is a heavy blow, the emotional and psychological scars can linger longer. However, sharing these experiences can be a powerful tool in combating the rise of such crimes. If you or someone you know receives unexpected messages about financial transactions, remember to verify the source independently, and never act hastily under pressure.

The fight against scams is ongoing, but with greater awareness, fewer people will have to endure the heartbreak of falling victim.