Scammers still prevalent; Lake sheriff attacks some in civil court

Editor's note: This story has been revised to correctly reference Detective Nick Jones.

TAVARES – Thieves are using new tricks and technology to drain unsuspecting people’s bank accounts, but the Lake County Sheriff’s Office is trying to get some of that money back.

Sheriff Peyton Grinnell’s detectives have filed two forfeiture cases in Lake Circuit Civil court that outline how crooks have siphoned off thousands of dollars for two victims.

It started with their computers being locked up, and a message to call Microsoft. Microsoft says on its website that it never includes phone numbers to call with its error or alert messages, never asks users to pay in cryptocurrency, and urges people to be wary of downloading anything from a third-party site.

Cryptocurrency is digital currency. There are different types, but investors buying, selling or exchanging Bitcoin has grown to be widely popular. One Bitcoin is worth about $29,000.

Victims of the Microsoft scam are told that after running a diagnostic test their bank accounts have been hacked.

“The victim was asked who she banked with and that she would be transferred to the bank’s fraud department. The person the victim spoke to advised $20,000 was withdrawn from her account by someone in Russia and that her personal information was used to verify the transaction,” one of the civil court filings stated.

The caller then told the frightened and confused woman that she would need to get a new Social Security number, and she was asked to provide account numbers and the amount of money in each one.

Then, there was another call, informing her that the Social Security Administration had a new procedure, and that it would move her money into cryptocurrency accounts, and then back into her Social Security account.

The next day, she was told the Social Security Administration agreed to help her, but she would need to put $50,000 in a crypto account at a Bitcoin ATM machine in Leesburg.

“On Jan. 26 and Jan. 27, the victim made deposits totaling $25,000 into the Bitcoin account…. On Feb. 7, the victim … conducted deposits totaling $24,900…. On Jan. 30, $100,000 was wire transferred from the victim’s bank account….

The victim did not realize she fell victim to this scam until Feb. 8….,” the court filing says.

Detective Jarrod Strickland discovered that a series of withdrawals of thousands of dollars were made within minutes of each other on Jan. 26 and Feb. 7. Not all of the transactions could be frozen in time by court order. The amount sought in the forfeiture suit is $143,953.13.

The other case involves similar losses, but the only amount frozen in that case is $38,777.14.

“Usually, it’s money laundering,” Strickland said of the motive. Money might be used for human or drug trafficking, guns or terrorism.

The chances of catching the scammers are slim to none unless authorities become aware they step foot in the U.S. “But we can hit them in the wallet,” Strickland said.

Cryptocurrency

Transferring U.S. dollars to cryptocurrency, which is digital currency, has speeded up the way crooks can pocket their loot. It is a lot faster than asking for gift cards or money.

Listed in the court filings are the names of two exchanges, which are like banks. Most are in or related to China. The latest computer scam comes from Poland and Belarus, both part of the former Soviet Union. Belarus has recently supplied weapons to Russia in its invasion of Ukraine. Exchanges like to open other branches like the Caymans or an island in the Indian Ocean.

Unlike bank transactions, which are private, transactions at crypto trading firms are public and can be seen online.

The trading companies give a “key” or a personal account number to a depositor, and it creates another account number for itself. It makes sure, before exchanging currency, that the money is really on hand. The trading companies make money through fees. It’s similar to money-changers who swap U.S. dollars for Euros, Strickland said.

'Butchering the pig'

Strickland is a self-proclaimed “nerd,” and a 17-year veteran of the sheriff’s office, mostly investigating financial crimes.

The biggest loser was a victim who lost $1.2 million by falling prey to a scam called “butchering the pig.”

It can start with a stranger sending you an email saying something like, “It was great catching up with you this weekend,” according to Wired magazine. The trouble starts when you respond by telling the sender that they have sent a message to the wrong person. The crook’s goal is to strike up a trusting relationship.

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The new “friend” starts talking about a great investment, maybe even referring the person to a legitimate website to see for himself. But the con artist has him link to a scam website or app, and that’s where the money starts to be drained.

“That’s the whole pig butchering – they are going for the whole hog,” security specialist Sean Gallagher told Wired in its Jan. 2 edition.

Sometimes the scammer will allow the victim to withdraw some money to make it seem legit – similar to a Ponzi scheme.

By the time the victim realized the mistake, it was too late for authorities to try and recover any of the money.

Another victim lost $250,000 after being told that his computer security system had been compromised.

Many victims are trusting seniors, including those who are lonely and fall for romance schemes, said sheriff's Detective Nick Jones. “If it sounds too good to be true, it probably isn’t,” Jones said.

Some are so embarrassed they don’t report the crime at all. Others wait until it’s too late for authorities to react.

Lt. A.J. Willits urges people to do their research. The FBI website, among others, has warnings about online scams. The detectives are seeing a growing network of agencies getting involved. The U.S. Secret Service has been especially helpful, he said.

Crypto is a new wrinkle. “We’re still learning about it,” Willits said.

This article originally appeared on Daily Commercial: Scammers get more sophisticated; Lake sheriff goes to civil court