AI Alerts Bay Area Widow to Crypto Scam Losses

A Bay Area widow in her 70s, Margaret Loke, lost nearly $1 million in a crypto scam known as 'pig butchering.' The scam began when a friend introduced her to a man named Ed on Facebook, who engaged her in a romantic relationship and ultimately persuaded her to invest her savings into a fraudulent crypto scheme.

Despite initially seeing returns on her investments, Loke was later told her account was frozen, and she needed to invest more money to access her funds. In desperation, she consulted ChatGPT, which alerted her that she was being scammed, prompting her to confront Ed.

Unfortunately, Loke had already wired significant amounts of money, including over $490,000 from her IRA and a $300,000 second mortgage, to scammers overseas. The incident highlights the increasing role of AI in identifying scams and protecting consumers in the digital age, as well as the devastating impact of such frauds on victims.

As a result, Loke faces the potential loss of her home and a hefty tax bill for early IRA withdrawals, illustrating the severe consequences of these scams. This story is a stark reminder to exercise caution when engaging in online investments and relationships, especially with individuals never met in person.