OCONEE COUNTY, Ga. — Georgia Attorney General Chris Carr announced that state and local law enforcement agencies have seized and returned stolen cryptocurrency to elderly fraud victims in east Georgia.
[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]
The recovery followed a joint investigation conducted by the Oconee County Sheriff’s Office, the Georgia Bureau of Investigation and the Attorney General’s White Collar and Cyber Crime Unit. The victims were targeted in a scheme involving a deceptive computer pop-up alert and an impersonation of federal officials.
The scheme began when a pop-up alert appeared on the couple’s computer claiming that their bank account had been breached. A perpetrator impersonating an official from the Federal Trade Commission directed the couple to withdraw money from their bank and deposit the cash into a cryptocurrency kiosk. The fraudster stayed on the phone with the victims while they were at the bank, giving them instructions on how to avoid drawing attention from bank tellers or anyone assisting them at the kiosk.
Once deposited into the kiosk, the cryptocurrency moved rapidly through multiple digital wallets before arriving at an account on a cryptocurrency exchange. Law enforcement officials traced the transactions to the exchange and seized the digital assets, after which a court ordered the funds returned to the victims.
Carr highlighted the collaborative effort needed to track digital transactions across multiple accounts.
“Our White Collar and Cyber Crime Unit is on the forefront of this fight – disrupting crypto scams, tracing transactions and recovering stolen funds,” Carr said. “Unfortunately, scammers often target older adults and we’re determined to do whatever it takes to protect their livelihoods.”
GBI Director Chris Hosey stressed the role of asset seizures in dismantling cyber fraud networks that prey on older residents.
TRENDING STORIES:
- Sanitation worker falls off truck, dies during first day of job
- National sandwich chain opening first Georgia locations
- Ex-Georgia tag office employee arrested in fraud investigation
“Cyber-enabled fraud targeting the elderly and other vulnerable individuals will not be tolerated,” Hosey said. “Those who impersonate others for financial gain, particularly those who prey on the most vulnerable, will be investigated. In many elder scams, victims are pressured to send cryptocurrency so the proceeds can be quickly liquidated. When investigations identify and seize the digital assets stolen from victims, bad actors are unable to coordinate across accounts, move stolen funds and recruit new victims.”
State officials have also enacted statutory measures aimed at protecting consumers at cryptocurrency kiosks.
Gov. Brian Kemp signed House Bill 945 into law on July 1, establishing financial exploitation protections that require virtual currency kiosks to display a warning stating that losses due to fraudulent or accidental transactions may not be recoverable and that virtual currency transactions are irreversible.
Federal consumer guidelines warn that legitimate businesses and government agencies will never demand cryptocurrency payments or direct individuals to transfer money out of bank accounts.
Authorities advise anyone targeted by a cryptocurrency scam to report the incident to local law enforcement, Operation Shamrock, the Federal Bureau of Investigation’s Internet Crime Complaint Center and the Federal Trade Commission.
[SIGN UP: WSB-TV Daily Headlines Newsletter]