Are Bitcoin Scammers Preying on the Elderly in Pima County?

The Pima County Sheriff’s Department (PCSD) is sounding the alarm on a new trend of scams in which foreign scammers steal money from elderly residents using Bitcoin ATMs. The scammers pose as government officials and deceive victims into putting large amounts of money into cryptocurrency machines, which makes it almost impossible to recover the stolen funds.

A Growing Threat in Pima County

PCSD Financial Crimes Detective Michael Wilson revealed that these scams have become alarmingly frequent. “We’re seeing these government impersonation scams daily,” he said. The fraud unit has observed a rising number of cases where elderly victims receive phone calls from scammers pretending to be PCSD officers.

These scammers threaten the victim, stating that they have not reported for jury duty and now there is a warrant for their arrest. To prevent jail time immediately, the caller demands that a bond be paid immediately—using cryptocurrency as opposed to accepted payment forms.

How the Scam Works

After the victim believes they are in legal jeopardy, the scammer gives precise instructions. The victim is instructed to withdraw huge sums of money and load it into a Bitcoin ATM, which is usually located in convenience stores. The machines exchange cash for cryptocurrency, and transactions cannot be reversed.

“Once it’s inside, the money is transferred from account to account in very, very high speed, and as such, it becomes very hard to find after that,” Wilson said. The victim may not even notice that they have been defrauded until the funds are long spent.

Why Scammers Target the Elderly

Scammers target seniors on purpose because they are likely to have a predictable income and tend to be more trusting. Most of the victims have lost thousands of dollars in one exchange, with no chance of recovering their money.

“They have a regular income, and, unfortunately, they are a bit more trusting,” Wilson said. This makes them the perfect victims for scammers who use lies and threats to carry out their cons.

Challenges in Recovering Stolen Funds

Since the embezzled money is channelled to foreign accounts, it is virtually impossible to track and recover it. Wilson concurred with the difficulty, remarking, “We’ve had a lot of success, we continue to make progress in these types of scams, but as the technology grows, it’s becoming increasingly difficult.”

Law enforcement authorities are struggling to intercept the looted money before it is received by foreign organizations, but success is not assured. The quick transfer of cryptocurrency between different wallets renders it almost impossible to track once it leaves the victim’s wallet.

Efforts to Prevent Further Scams

To counter this emerging danger, PCSD installed warning signs around Bitcoin ATMs. These warning signs warn potential victims before the processing of a transaction, cautioning them to stop and check if the payment request is legitimate or not.

“Having these warnings in front of them where they can see them, where they’re making those deposits, can sometimes be the difference between them losing money and them protecting themselves and just hanging up the call,” Wilson said.

Staying Vigilant Against Scammers

Since criminals are increasingly using technology for their frauds, awareness is the best defense. Law enforcement agencies are keen to combat these scams, but citizens too have to do their bit to secure themselves. Through awareness and caution, individuals can avoid becoming victims of these fake schemes.