Victim reports fraud scheme resulted in $444,000 loss

Jan. 4—Fairfield Glade Police have been asked to look into an elaborate scheme to defraud a local man of around $444,000 that unfolded over a four-month period, according to a report released this past week.

The 80-year-old St. George resident filed a report with Fairfield Glade Police Officer Jacob VanTrump on Dec. 21. At that time, the victim said he started receiving the fraudulent communications on Aug. 8.

On that date, the victim said he was contacted by a man posing as working for Comcast's fraud department with the claim a third party had hacked into his home network.

The caller convinced the victim he needed access to the home network and was given all the necessary codes and/or passwords to access the network. The hacker then told the victim the firewall on the network "was inadequate and needed to be upgraded" at a cost of $5,000 for hardware and software.

The victim was told Comcast would reimburse those costs if the victim would submit an extra $1,500. The victim was then instructed to purchase $5,000 in gift cards using the victim's American Express card with receipts given to the caller.

Over the course of the next few months, this or similar scenarios were repeated, usually with the claim "the fix" was inadequate and needed to be enhanced. Each time the amount of funds — either Bitcoin or gift cards — were requested, the amount increased.

Each time the victim was told to provide activation codes, which the victim did. The victim was repeatedly told federal investigators and a financial institution were working on the victim's "hacking" case.

During the scheme, the victim transferred funds from two local banks to pay for the demands of the caller. In November, the victim took out a $25,000 loan and a mortgage on his home to meet the demands of the contact. Those funds were converted into Bitcoin and given to the caller.

When it reached the point assets were drained, the victim asked for help from a son who looked into the matter and told the victim this was a scam. A call was placed to the Tennessee Bureau of Investigation but policy of that agency is not to accept citizen complaints unless requested by the District Attorney's Office.

The victim was referred to Fairfield Glade Police, which filed a report on the incident on Dec. 28.

Investigation is continuing but police continue to warn citizens of fraudulent activity and urge those who receive suspicious calls to seek outside opinions before sending money, gift cards or other forms of currency.

Michael Moser may be reached at mmoser@crossville-chronicle.com