By Mark Hunter
5 days agoFri Nov 29 2024 10:51:33
Reading Time: 2 minutes
- Federal authorities recently seized nearly $1 million in cryptocurrency linked to a scam that defrauded an elderly Ohio man of his life savings
- The victim was deceived by fraudsters posing as Apple support representatives, who gained remote access to his computer
- The funds were seized and are in the process of being returned to the victim
Federal prosecutors in Cleveland are seeking the forfeiture of approximately $1 million in Tether (USDT) seized from scammers who drained an elderly Elyria man’s life savings. The victim, believing he was protecting his retirement account, granted remote access to his computer to individuals impersonating Apple support representatives. These fraudsters then transferred his funds into various cryptocurrency accounts, resulting in a total loss of $425,000. Authorities are now applying to have the seized coins returned to him.
Fake Apple Support Assitant Stole The Funds
The scheme began in October 2023, when the victim received a deceptive pop-up message on his computer, urging him to contact a support number to resolve a supposed technical issue. Once contact was made, the scammers convinced him that his retirement account had been compromised, with funds allegedly being wired to accounts in China, Russia, and a Las Vegas casino. Under the guise of assisting him, they persuaded the victim to transfer his money, which was then converted into USDT, a stablecoin pegged to the U.S. dollar.
Through blockchain analysis, investigators traced the stolen funds to a specific crypto wallet and, on July 31, 2024, law enforcement executed a federal seizure warrant, recovering 947,883 USDT tokens. A civil forfeiture complaint was filed on November 26, 2024, aiming to forfeit the seized cryptocurrency; if successful, the United States intends to provide compensation to the victim.
Scammers Changing Tactics
This case underscores the increasing prevalence of sophisticated cryptocurrency fraud schemes targeting vulnerable individuals. The FBI’s Cleveland Division acknowledged the assistance of Tether in seizing the funds, which will hopefully soon be with their rightful owner.
The incident is another example of how scammers are changing their tactics in order to steal funds, but the golden rule remains that if someone contacts you rather than you contacting them, confirm their authenticity with the company they purport to represent before allowing any kind of access.
