A retired Washington social worker lost more than $300,000 in a gold coin courier scam, then faced a second financial shock when the stolen money triggered tax and Medicare premium consequences.
Barbara Putnam, 73, spent 40 years as a social worker and mental health program manager for the state of Washington, based in Olympia, according to 24/7 Wall St.
The scam began after she clicked what she thought was a Facebook Messenger shortcut. Her computer went black, and a pop-up claimed she had been hacked and needed to call Microsoft Tech Support.
The Pop-Up Created a Fake Legal Emergency
The first caller sounded calm and official, according to the report. The fake tech-support representative told Putnam that hackers were using her IP address and Social Security number to buy child pornography on the dark web.
Putnam was then rerouted to an imposter who claimed to work for her investment firm’s fraud department.
Within days, scammers had pushed her to liquidate assets, buy gold coins, and hand them to a courier under the false claim that the money was being moved to a government-protected account.
She told KING 5 Investigators that the money represented the safety net she had built across 40 years of work.
The IRS Bill Came After the Money Was Stolen
Because Putnam sold stocks to fund the scam, the IRS treated the sale as a taxable event and sent her a $53,000 tax bill on money that had already been stolen, according to 24/7 Wall St.
After a prolonged fight with help from a law clinic and new IRS guidance for fraud victims, she was eventually allowed to classify the losses as fraud losses, the outlet reported.
The National Taxpayer Advocate has warned that scam victims can face complex tax consequences after fraud, including cases where victims are taxed on income created by withdrawals or asset sales even though the money was stolen.
Medicare Premiums Added Another Consequence
Putnam then faced a separate issue through Medicare’s Income-Related Monthly Adjustment Amount, known as IRMAA.
IRMAA increases Medicare Part B and Part D costs for higher-income beneficiaries based on income information reported to the IRS. The income generated when she sold assets for the scam could still affect the Medicare premium calculation even though the money was stolen.
Social Security says people who had a life-changing event that reduced household income can ask to lower the additional IRMAA amount paid for Medicare Part B and Part D. The agency also says people with an amended income tax return can call Social Security and ask to lower IRMAA.
The Scam Used the Same Script Agencies Warn About
The FTC says tech support scammers often use fake computer warnings to scare people into believing there is a problem with their device. In some versions, scammers claim a person’s name is linked to serious crimes and transfer the victim to someone pretending to be from the government.
The FTC says scammers use the same pattern which is the victim is told to withdraw money, move funds to a supposed safe place, buy gold, or give cash or gold to someone.
There is no real “government-protected account” or “federal safety locker” for consumers to protect money from a hacked account.
Fraud Victims Should Contact The Financial Institution
The first step after a fake pop-up or tech support call is to stop contact, avoid calling the number on the screen, and reach the real company, bank, investment firm, or government agency through a verified website or phone number.
Anyone who already moved money, sold investments, bought gold, handed valuables to a courier, installed remote-access software, or shared account information should contact the financial institution immediately and file reports with local law enforcement, the FTC at ReportFraud.ftc.gov, and the FBI’s Internet Crime Complaint Center at IC3.gov.
Scam victims who receive an IRS bill or IRMAA notice after selling assets or withdrawing money under fraudulent pressure should speak with a qualified tax professional or legal aid clinic as soon as possible and contact Social Security directly about IRMAA options tied to amended tax information or a qualifying income change.