CLEVELAND — In my continuing coverage of scams, I've learned there's a new worry for those who have already been victimized, specifically those who lost money in cryptocurrency schemes.
I'm circling back on a comment shared with me by a Northeast Ohio man who lost $80,000 in an elaborate investment scam.
It sparked concern at the BBB of Greater Cleveland almost immediately after my original story aired, and then a warning from the FBI Cleveland field office wasn’t far behind.
The Mayfield Heights man didn’t want to give us his name and wanted his face blurred.
His hard-earned cash was essentially turned into monopoly money.
"I was depressed for, for a while," said the scam victim.
As for what he said, that triggered new warnings centered on his attempt to recover his cash.
"I'm using my resources to try to recover my funds by a third company that go to scammers by the law enforcement," said the man.
About 24 hours after our story aired, BBB of Greater Cleveland President Sue McConnell sent me an email saying scammers use bogus recovery efforts to get even more money.
It's a tactic Patrick Koeth is very familiar with.
"It's a new spin on an old type of scam. Hey, I'll help you get your money back, which I might have stolen in the first place," said Koeth.
Koeth is a special agent in the FBI Cleveland Division and focuses on white collar crimes.
Just last week, the FBI issued a warning to victims, some of whom lost their life savings.
"These people at this point don't have any money. We see they are borrowing money from family or friends in an effort to try to get this money back," said Koeth.
He told me fraudsters pose as lawyers from fictitious firms and claim they can recover lost cryptocurrency funds.
As for how they are connecting with each other, Koeth said victims are Googling ‘get my cryptocurrency back.’
The internet is also where those behind this scheme advertise.
Patrick Koeth with the Cleveland FBI said he is seeing scammers target victims both online and by reaching out to them.
"They're advertising online saying that they can do something which very few people can do in the first place," said Koeth.
That's because bad actors make it very challenging to trace.
However, Koeth's team at the FBI has been successful.
"We have some of the best in the business, some of the best in the country here in Cleveland," said Koeth.
I learned Cleveland is home to the Midwest Cryptocurrency Task Force.
"We have some of the best experts here and are able to do intricate level tracing and with the support that we have from the U.S. Attorney's Office, we're able to freeze those funds first and then back it up with the legal process in order to seize that so that we can return it to the victims," said Koeth.
Koeth said calling victims to tell them the FBI recovered their money is incredibly rewarding, especially when he can hear the relief in their voices.
And that is the motivation Koeth said that pushes them to keep doing the hard work.
So, how big of a problem is this for cryptocurrency scam victims?
According to the FBI Internet Crime Complaint Center, or IC3, between February of 2023 and February 2024, victims exploited by fictitious law firms reported losses of nearly $10M.
I followed through with the Mayfield Heights man I originally interviewed to react to the concerns he might be getting scammed again.
The only thing he said via email was that he hadn't heard anything yet from the company he was using.
He didn't respond to my request for another interview for this story.
If you think you've been the victim of any scam, it's so important you report it whether or not you lost money.
You can do that on the BBB’s Scam Tracker.
To report it to the FBI, click here.
I am committed to following through to better protect your personal and financial well-being.
You can email me at michael.brookbank@wews.com with any consumer-related concerns or if you have been victimized by a scam.
