Mon. Oct 7th, 2024

Lois Lost Nearly $50,000 in a Cryptocurrency Scam: Her Warning to Others

An 83-year-old East Bay woman named Lois lost nearly $50,000 to a scam she believed was a desperate call for help from her grandson. Now, she’s sharing her story to warn others about the devastating experience.

It started on a Friday night when Lois received a call from a man claiming to have her grandson. “He sounded so distraught and was crying,” Lois recalled. The man, pretending to be her grandson, told her, “I’ve had too many beers, drove the wrong way, hit a car, and got arrested.”

The scammer pleaded with her, “Don’t tell anyone, not even family,” and Lois, wanting to help, promised to keep it secret and assist with his $9,500 bail.

The scammer then told her that the court had a new way to process bail payments quickly—using Coinstar machines. Lois, trusting the story, withdrew cash from her bank and fed $100 bills into the Coinstar machine at Safeway, following instructions to transfer the funds to a cryptocurrency account.

The next day, Lois received another call, this time claiming that additional charges had been filed, raising the bail by $15,000. The scammer said the accident caused the other driver to miscarry. Lois went back to the Coinstar machine, feeding more money into the machine.

A third call soon followed, asking for an additional $25,000 for attorney fees and court costs. Feeling pressured, Lois complied.

Despite warning signs from bank managers, Coinstar machine alerts, and even a concerned shopper who saw her at the machine, Lois continued to trust the scammer, believing she was helping her grandson.

Eventually, Lois texted her real grandson, who responded, “I’m fine, how are you?” That’s when she realized she had been scammed. Lois immediately called her daughter Lisa to explain what had happened.

Lisa spent days trying to contact Coinstar and its partner, Coinme, for help. Unfortunately, due to the irreversible nature of cryptocurrency transactions, the funds were unrecoverable. Coinme issued an apology and explained that while they provide multiple warnings during transactions, scams like this use emotional manipulation to deceive victims. The scammer’s account was closed, but the money was gone.

Lois now encourages families to create a secret password or phrase to verify the identity of loved ones in emergencies. “Maybe it won’t happen to someone else,” she said, hoping her story will protect others from similar scams.

Lois received an email from Coinstar expressing their condolences and explaining that due to the nature of cryptocurrency, her money could not be recovered. Coinme assured Lois that they cooperate with law enforcement, but the funds had already been transferred and were beyond recovery.

“They just destroy people’s lives,” Lois said of the scammers. “They’re despicable people.”

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