Bitcoin and fake ID in latest scam, Fairfield PD warns
FAIRFIELD — The police department is warning residents about a new scam involving Bitcoin and impersonating officials that has affected some residents.
The department received a call Nov. 22 from a resident who sent $7,000 in Bitcoin, a prominent cryptocurrency, to an unknown account to someone who claimed to be with the fraud unit before realizing she was being scammed, Lt. Mike Paris said in a news release. release.
Reached by phone Thursday, Paris said such scams have been reported a few times in Fairfield.
“There are a number of these scams that are happening with the way to deposit the money is the Bitcoin ATM,” he said. “This is the only one so far using the police alias.”
Paris said the resident who reported the incident in November told police she received a call from an unknown man claiming to work for the fraud department of an online retailer.
“He stated that fraud was detected on her account and informed her that she needed to transfer her funds to a Bitcoin account,” Paris said. “The resident was then allegedly ‘transferred’ to the Federal Trade Commission where she spoke with an officer who sent her photos of their alleged credentials.”
Paris said the resident received another call from a woman posing as a Fairfield police officer who advised her to do what the first caller had asked her to do. The phone number used by the second caller was a spoof of the police department’s number, he said, and appeared as the department on caller ID.
“The callers then instructed the resident to send them a photo of her driver’s license and empty her bank accounts, claiming they were compromised,” he said. “The resident then took money out of her accounts and deposited the money into a Bitcoin ATM at a location provided to her by the callers. The resident was also asked to withdraw $20,000 from her retirement accounts.”
Paris said the resident stopped the withdrawal from her retirement accounts, adding that she contacted the Connecticut Department of Motor Vehicles to change her license number. He said it remains unlikely the money will ever be recovered, noting that Bitcoin is a virtual encrypted currency and transactions are anonymous.
Paris said residents who receive similar calls should contact the department immediately.
According to the FTC fraud website, people can look for several signs to recognize possible scams. It notes that scammers often pretend to be from an organization people know, such as the Social Security Administration, Internal Revenue Service or a utility company, while others make up official-sounding names or an official-sounding name.
The FTC says scams usually say there is a problem or a prize, such as being in trouble with the government or in debt to another organization, claiming that someone in the family has had an emergency or that there is a virus on the possible victim’s computer . It said some scammers claim there is a problem with an account and say the person needs to verify information.
“Scammers pressure you to act immediately,” it says. “They can tell you not to hang up so you can’t check their history. They can threaten to arrest you, sue you, take away your driver’s or business license, or deport you. They can say that your computer is about to be destroyed.”
The agency also noted that fraudsters try to get victims to pay in a very specific way, such as through money transfer or through gift cards.
Paris said the department wanted to remind residents that organizations do not request payment with a gift card, prepaid debit card or money transfer service.
“This should be a significant red flag. Prepaid debit cards and gift cards are not legitimate ways to pay for goods and services,” he said. “They are untraceable and once funds are transferred, the money cannot be recovered.”
People can report any type of suspected fraud or scam at ftc.gov/complaint, or call toll-free: 1-877-FTC-HELP. For more information about fraud, visit the Federal Trade Commission’s website or your state’s website.
