Scams and Hacks: The Dark Side of Cryptocurrency

Heidy L., a 68-year-old woman from East Mesa, Arizona, fell victim to a sophisticated scam, losing nearly $40,000 of her life savings. On November 4, 2024, she received an email that appeared to be from a coworker, claiming she had been double-charged by Norton, the privacy protection company.

Believing the email to be legitimate, Heidy called the customer service number provided, which led her into a trap set by scammers. The man on the line, who identified himself as Christopher, transferred her to another scammer named Charlie.

Over the course of eight hours, Charlie manipulated Heidy into believing she needed to return a $40,000 refund that had never actually been credited to her account. During this time, they exchanged more than 40 calls on WhatsApp, heightening her sense of urgency and panic.

As Heidy filled out an online form, a glitch appeared, indicating a $40,000 refund had been processed. Charlie then presented her with two options: wait for the banks to communicate or follow his instructions to recover the money immediately.

Under the pressure, Heidy chose the latter and was guided to withdraw cash from her bank, Navy Federal Credit Union, under the pretense of remodeling her home. Despite restrictions on ATM withdrawals, she managed to collect the necessary funds by visiting multiple branches.

Charlie then sent her to a Bitcoin ATM, a favored method among scammers due to its anonymity. Over the course of the day, Heidy deposited $6,000 at the ATM, thinking she was returning the money. Charlie even sent an accomplice to collect nearly $28,000 in cash from her at a gas station.

By the end of the day, Heidy had sent scammers around $35,000, leaving her devastated and in shock. When her daughter learned of the incident, she immediately recognized that Heidy had been scammed, a realization that triggered panic for Heidy.

The Arizona Attorney General's Office noted a troubling increase in scams, with residents losing over $390 million to cyber-enabled crimes last year, a staggering 444% increase since 2020. In Arizona, Bitcoin ATMs have seen a 99% spike in scam-related complaints, particularly affecting seniors.

Despite Heidy's efforts to recover her funds, including reporting the scam to the Mesa Police Department, the outlook appears grim. Heidy's bank stated they could not assist her due to her voluntary withdrawals.

Currently, her daughter is raising funds through GoFundMe to support her mother, who feels hopeless and betrayed. The Attorney General's Office has issued warnings and is actively working to curb these scams, but the emotional and financial toll on victims like Heidy remains significant.