Fraud is a reality that affects both people and businesses. As schemes grow more complex, understanding and preventing these crimes is a necessity for all, especially in the digital market of finance. According to Veriff’s 2024 Fraud Index, nearly half (47.8%) of users have experienced fraud in the 12 months from January 2023.
This article explores true scam stories, including the newest and more innovative tactics that are being used. These examples highlight the deceptive strategies of fraudsters and the importance of vigilance and informed prevention.
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5 True Scam Stories: News Digest about Fraud
1. Financial Advice Scam: James Loses $600 in Cold-Calling Swindle
Initial Scam
James, a retired widower in his 70s, fell victim to a financial advice scam after receiving a cold call from someone claiming to be an investment adviser from Sharesies. The scammer, named Kumar, convinced James to pay $299 for investment advice and then remotely accessed James’s computer to view his investment portfolio.
Financial Loss
Kumar took $600 from James’s PayPal account, advising him to invest in shares that later lost value. Later payments raised James’s suspicions, especially when he noticed funds were sent to a Singapore bank account.
Realization and Aftermath
Sharesies confirmed they do not provide financial advice or operate in Singapore. Realizing he had been scammed, James felt demoralized and ashamed. He received a partial refund from PayPal but continues to be cautious, having learned to block unknown numbers and verify the identity of financial advisers to avoid scam calls.
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2. Fake Bank Representative Scam: Tech-Savvy Individual Almost Scammed
Initial Scam
In a recent incident, a tech-savvy person almost got scammed by someone claiming to be from their bank. The scammer deposited $10,000 into their account and then tried to wire out $8,500.
Detection and Realization
They recognized the scam when the fraudster attempted to have them activate call forwarding by texting a code and then asking them to respond with *72. Sensing something was off, they called their bank, who confirmed it was a scam.
3.Multi-Million Dollar Fraud Through Deepfake Technology
In a recent case of online fraud reported by CNN, a finance worker at a multinational firm was scammed into transferring $25 million through a video conference manipulated with deepfake technology. During the call, scammers used this advanced technology to fake the physical appearance and voice of the company’s chief financial officer (CFO), convincing the worker to make a big financial transaction.
The Discovery and Response
The incident was uncovered when the employee, initially suspicious of a phishing email claiming to be from his CFO, decided to ignore his doubts after the video conference. In this call, all participants seemed like familiar colleagues, which temporarily dispelled his suspicions. Unfortunately, all the “colleagues” were in fact deepfake creations, and the approved transaction amounted to about 200 million Hong Kong dollars.
This case shows the increasing use of deepfake technology for committing fraud but also the need for stricter security measures in corporate transactions. Hong Kong police, who reported having made several arrests related to such scams, continue to investigate the depth and reach of these technological crimes.
4. Double Deception: Long Island Woman Falls Victim to Romance and Recovery Scams
A Long Island woman, Connie Rotolo, suffered a massive loss of $468,000 due to a romance scam, only to be scammed again when seeking assistance online. CBS New York investigates the growing prevalence of such scams, revealing a troubling pattern where victims like Rotolo find themselves targeted multiple times.
Seeking Support
After her husband’s death left her isolated during the pandemic, Rotolo sought companionship online. She connected with a man claiming to be an engineer in the Philippines. Over time, he convinced her to send nearly half a million dollars to help him evade purported dangers. When Rotolo realized she had been scammed, she turned to Facebook groups designed to support victims of romance scams, like the Cryptoscam Defense Network Facebook group.
Scammed Again in the Search for Help
There, she found people posing as agents from the FBI’s Internet Crime Complaint Center, promising to recover her lost funds without upfront fees. Tragically, she was deceived again and ended up sending more money to these new scammers.
Meta, the parent company of Facebook, and the Manhattan District Attorney’s Office emphasize the challenges in combating such scams and the importance of recognizing early warning signs to prevent further exploitation.
5. Eviction Notice Scam: Owner Signs Away Property
Initial Scam
A scammer targeted an owner by finding eviction notices in public records. He approached the owner, claiming he could get rid of a problematic tenant if she signed a document.
Financial Loss
The document was a Quit Claim Deed, effectively transferring ownership of the property to the scammer.
Realization and Aftermath
The owner, unknowingly, handed over her property, falling victim to the scam.
6. Ontarians Fall Victim to Cryptocurrency Scam
According to the CTV News, in Ontario, three men have suffered financial losses due to a sophisticated crypto scam. One victim from Brampton, Mohammad Haque, lost $226,000 after being enticed by a deepfake video that falsely featured Prime Minister Justin Trudeau promoting lucrative cryptocurrency investments.
Victims Share Their Harrowing Experiences
Haque initially invested $1,200 and believed his returns had surged to over $400,000. However, upon attempting to access his funds, he discovered his account was empty. Similarly, Darrell Budnick from Mississauga lost $130,000 after being deceived by a video claiming profitable returns on cryptocurrency investments. Another victim, Giovanni Pugliano of Hamilton, was tricked by a deepfake video of Elon Musk, resulting in a loss of $17,000.
These scams have led to devastating consequences, with victims facing severe financial and emotional distress. The Ontario Provincial Police have issued warnings about these scams, noting an alarming increase in cases and severe impacts, including loss of homes and life savings.
7. The Pink Drainer Address Poisoning Scam
Pink Drainer, a notorious group infamous for crypto wallet draining, recently became the target of an address poisoning scam. Crypto compliance platform MistTrack highlighted this incident in a July 7 post on X, revealing that the group lost 10 Ether (ETH), valued at approximately $30,000.
Mechanism of Address Poisoning Scams
These scams involve sending small amounts of cryptocurrency to a victim from an address that closely resembles one of their frequently used addresses. The scam’s intent is to deceive the victim into mistakenly transferring funds to the wrong address.
Execution and Impact of the Scam
In this specific case, the scammers crafted a wallet address nearly identical to one previously used by Pink Drainer, successfully deceiving them into sending 10 ETH to the fraudulent address. This event occurred shortly after Pink Drainer’s unexpected May 17 announcement of ending their operations, having achieved their goal of stealing over $85 million in crypto assets.
Despite Pink Drainer ceasing its activities, other draining tools such as Angel Drainer,, and Venom Drainer continue to assist criminals in stealing cryptocurrency.
8. Fake Pool Maintenance Scam: Payment Request for a Non-Existent Service
Initial Scam
Another case involves a woman who was approached by a man claiming to work for a pool company. He stated that he needed payment for maintaining the pool of a house that was on the market.
Detection and Realization
Upon investigating, she found out that the pool maintenance service was a scam, and the supposed worker had no affiliation with any legitimate company.
Help Detect and Prevent Fraud Today
As increasingly complex fraud schemes become known across various sectors, community vigilance and proactive engagement are essential. According to the Association of Certified Fraud Examiners (ACFE), 43% of fraud cases are detected through tips from users who notice irregularities, underscoring the importance of sharing their true scam stories.
This data highlights the critical role that each person plays in protecting against fraud. At Cryptoscam Defense Network, we lead these initiatives by educating our community and providing essential tools for fraud detection. By doing so, we enable users and businesses to protect their digital and financial assets effectively.
We Want to Hear From You!
Fraud recovery is hard, but you don’t have to do it alone. Our community is here to help you share, learn, and protect yourself from future frauds.
Why Join Us?
- Community support: Share your experiences with people who understand.
- Useful resources: Learn from our tools and guides to prevent fraud.
- Safe space: A welcoming place to share your story and receive support.
Find the help you need. Join our Facebook group or contact us directly.
Be a part of the change. Your story matters.
Photos via Unsplash.
