Win for New BCI Investigative Unit, Money Lost in Cryptocurrency Scam Is Recovered

(WORTHINGTON, Ohio) - A new unit within the Bureau of Criminal Investigation recently recovered $130,000 lost in a cryptocurrency scam in the Columbus area, marking its first victory as a specialized team assigned to help local law enforcement with such cases.

"Criminals are hitting cryptocurrency scams hard which can have lasting impact to your bank account and your credit history," Ohio Attorney General Dave Yost said. "Recovering lost electronic funds can be a sophisticated goose chase, but our agents and analysts are getting ahead of the curve to help victims recoup their money."

Established as an ongoing effort to assist law enforcement and protect Ohioans, AG Yost formed the Electronic Fraud Investigations unit. This unit specializes in cyber financial crimes and provides law enforcement with the necessary tools and tips to recover and prevent financial fraud. In this instance, $130,000 was recovered as part of case in Worthington, a northern suburb of Columbus. The perpetrators of the scam are unknown.

"These days most financial transactions are electronic, creating an opportunity for online criminals and scammers to commit crimes - but you don't have to be a victim," said Worthington Chief of Police Eric Grile. "The solution to the issue is to be vigilant and report suspicious activity, immediately. Thanks for the work of BCI, they were able to recover some of the money back for our resident."

Worthington senior victimized

On July 31, the Worthington Police Department requested help from BCI's Electronic Fraud Investigations unit to investigate a cryptocurrency scam involving a 75-year-old female victim. The woman had received a pop-up message on her computer warning that she was the victim of "fraud." The victim called the phone number provided in the warning and was told that "fraudulent activity" was observed on her husband's bank account.

The scammers instructed the victim to withdraw $1,000 from her accounts and deposit the money into a Bitcoin ATM machine. The scam escalated from there, as the victim continued to comply with the bad actors' demands, making additional deposits, providing personal information, and granting access to bank accounts and a cryptocurrency wallet.

In all, the victim reported a loss of $280,000 to police.

Because the loss was quickly reported to law enforcement, some of the funds were able to be recovered. BCI agents used specialized investigative tools to trace the cryptocurrency on the blockchain, which is a digital ledger. Agents were able to locate and freeze about $130,000, which will be returned to the victim.

The complexities of cryptocurrency scams - which often encompass multiple and rapid movements of funds once they are sent to scammers - make full recoveries difficult.

BCI's Electronic Fraud Investigations Unit

The Electronic Fraud Investigations unit which was formed in the summer, uses a multidisciplinary approach to investigate complex electronic fraud against Ohioans, with an emphasis on cryptocurrency and racketeering crimes and patterns of corrupt activity.

The unit helps bridge the investigative gap between local law enforcement and federal law enforcement, striving to investigate and, when possible, prosecute offenders to the fullest extent and recover stolen money.

Agents and personnel from BCI's Forensic Accounting Unit, Special Investigations Unit, Cyber Crime Unit, Special Victims Unit, Criminal Intelligence Unit and Public Official Corruption Unit provide various expertise and investigative resources to Electronic Fraud Investigations.

Law enforcement agencies seeking BCI's assistance should contact BCI by phone at 855-BCI-OHIO or email at [email protected].

How to detect cryptocurrency scams

Education and prevention are the best deterrents for consumers against cryptocurrency scams.
Citizens may be a target of fraud if they are:

• Older and seemingly vulnerable or confused.
• On a cellphone being directed what to do.
• Withdrawing an unusually large amount of cash (typically $500 to $20,000).
• Withdrawing cash to deposit into a Bitcoin ATM.

A consumer might be the target of a scam if they are withdrawing cash to:

• Pay bail or remove a warrant for a loved one.
• Pay to have a virus removed from a computer.
• Pay for help with a hacked computer or account.
• Pay a blackmailer to keep alleged pornographic photos private.
• Send funds to an online romantic partner they have never met.

In general, consumers are encouraged to be aware of potential scams and be inquisitive if they asked by unknown individuals to make transactions.

Additional resources about cyber safety and cryptocurrency scams are available through the AG's Consumer Protection Section, which works to educate Ohioans about online dangers.

MEDIA CONTACT:
Steve Irwin: 614-728-5417

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