Elderly couple lose $1.3 million retirement savings to crypto scammers

Crypto scammers have successfully scammed an elderly couple out of $1.3 million meant for their retirement savings. The couple was conned by scammers pretending to be representatives from the Federal Trade Commission (FTC). The scammers tricked them into sending funds using Bitcoin ATMs and gold.

The couple, Barbara and Larry Cook, were approached by crypto scammers who claimed they were security representatives from Amazon and TD Bank. The scammers were able to convince the couple that their identity had been misused on the dark web, noting that the individuals had made illegal purchases on the website.

The Cooks were drawn into a web of deceit by the scammers who stole $1.3 million meant for their retirement, charity, and family, according to their will.

Crypto scammers steal $1.3 million from elderly couple

The con started with the crypto scammer asking them to pay stashes of $50 and $100 bills into Bitcoin ATMs, and hand over gold bullion in their home state of Maine and in Florida, where they lived in a condo for the winter.

The scam went on for six months before the Cooks realized that they had been duped. According to reports, the crypto scammer gained their trust by highlighting that they were doing their civic duty by assisting the FTC, which was following the money to catch criminals.

“My wife and I have always liked to help people,” Larry Cook, now 82, a former pastor in Pennsylvania and founding pastor of the Africa-based nonprofit, Kenya’s Kids, said. “We thought we were helping the US government.”

In a follow-up call to the supposed contacts from Amazon and TD Bank, the crypto scammers convinced them to help by threatening expensive court action against them if they failed to comply with their directives.

The criminals also included their two sons, noting that they won’t hesitate to drag them into the case. They highlighted that their sons were already successful and they could not afford to have their reputations damaged.

Another tactic they used was to ask the Cooks to transfer their savings into safe accounts, after being converted to Bitcoin or gold. The crypto scammers mentioned that it was because the funds were at risk of being stolen. They convinced them by saying the criminals knew their social security numbers and other personal details.

Criminals threatened the victims to cooperate

The crypto scammer also kicked their scam up a notch by sending them a convincing letter with a seal purported to be from the previous treasury secretary. The letter said that if they revealed to anyone that they were part of the investigation, they would pay the price by stripping them of their assets.

Larry mentioned that even though the story sounded unbelievable, they were scared. He mentioned that the fear led them to sign a fake agreement with the crypto criminals.

The couple mentioned that they were later assigned an FTC agent, who said his name was Ryan Terry. Terry showed them how to download WhatsApp, which he often uses to make voice calls to them. At one point, he instructed them to set up a Bitcoin wallet.

He impressed upon Larry to withdraw more than $1.3 million in increments from TD Bank, cleaning their savings account, including 401(k) plans. Larry mentioned that he was often questioned by bank clerks, most of the time, asking if it was a scam.

Larry mentioned that he called Terry after returning from visiting one of the children’s homes of his organization, only to discover that his WhatsApp no longer worked. He tried several times before dialling the office of the FTC in Dallas, where he said he worked. He mentioned that his heart sank when he was transferred to a victim hotline and was asked to contact the police and FBI. He was also told that the FTC does not ask for money, crypto, or gold to aid investigations. The FTC also told him that they don’t keep investigations private.