A sponsored Facebook advertisement led a 78-year-old Michigan woman into an elaborate impersonation scam that ultimately cost her nearly $20,000.
Michelle Fox said her computer filled with warning pop-ups after she clicked the advertisement. She called a telephone number displayed on the screen and reached someone who claimed to scan her computer before transferring her to a supposed Federal Trade Commission representative.
Then came another call, this time from someone claiming to represent the Warren Police Department. The scammers sent Fox official-looking legal documents, told her she was connected to a criminal investigation and warned that she could be arrested and lose her assets.
Fox withdrew cash and deposited nearly $20,000 into a Bitcoin kiosk at a gas station on Van Dyke. The following day, the callers demanded another $15,000, according to WXYZ.
The Facebook Ad Led to a Chain of Impersonators
Fox said the ordeal began when she clicked a sponsored advertisement on Facebook and suddenly saw numerous warnings appear on her computer.
One warning included a telephone number. Already worried that something was wrong with the computer, Fox called it and reached someone who presented himself as capable of checking the device.
The interaction then moved beyond supposed technical support. Fox was transferred to someone claiming to work for the FTC before she began receiving calls from a person presenting himself as a Warren police officer.
Fake Legal Papers Made the Threat Look Official
The person posing as a police officer told Fox that she had become connected to a criminal investigation. She was also sent documents designed to make the situation appear legitimate.
Fox said the paperwork looked convincing. The caller reinforced it with threats that she could be arrested and authorities could seize her car, home and other assets if she failed to cooperate. The scammers also instructed her not to discuss the situation with anyone else.
Warren Police Lt. John Gajewski told WXYZ that isolating victims and creating an urgent need to act are common tactics in these schemes. Preventing a target from speaking with family members, bank employees or real law enforcement reduces the chance that someone else will recognize the fraud.
Nearly $20,000 Went Into a Bitcoin Kiosk
The supposed solution was not a court appearance or meeting with police. Fox was told she could avoid arrest by sending nearly $20,000 in Bitcoin. She withdrew the money in cash and went to a Bitcoin kiosk at a gas station on Van Dyke, where she deposited it while following the caller’s instructions.
The Federal Trade Commission has specifically warned about scammers impersonating its employees and directing victims to cryptocurrency kiosks. Once cash is deposited into a Bitcoin kiosk and cryptocurrency is transferred to a wallet controlled by a scammer, recovering the money can be extremely difficult.
The Next $15,000 Demand Sent Her to Real Police
The following day, Fox received another call asking her for an additional $15,000. This time, she contacted the real Warren Police Department and filed a report instead of making another payment.
Fox decided to speak publicly about what happened because she wanted other people to recognize how elaborate an impersonation scheme can become before the victim realizes that the underlying emergency is fake.
No Government Agency Will Send You to a Bitcoin Kiosk
The FTC warns that its employees will never threaten someone with arrest, demand money or instruct a consumer to move funds to protect them. Government agencies also will not require payment through cryptocurrency, gift cards or a Bitcoin ATM.
Anyone told to withdraw cash and deposit it into a cryptocurrency kiosk should stop before making the transaction and discuss the request with a family member, bank employee or law enforcement agency contacted through a verified number. Instructions to keep the situation secret are another major warning sign.
Someone who has already deposited money into a cryptocurrency kiosk should immediately contact the kiosk operator and the financial institution used to obtain the cash and report the transaction as fraud. Receipts, wallet addresses, QR codes, telephone numbers, emails and fake legal documents should be preserved for investigators. Government impersonation and cryptocurrency scams can also be reported to the FTC at ReportFraud.ftc.gov.