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Tag: scammer

  • Central Florida jury duty scam calls linked to Georgia prison

    Those “jury duty” scam calls many Central Floridians have been getting may be coming from an unexpected place: a prison — linked to organized criminal networks.A joint investigation involving state and federal agencies found inmates inside a Georgia prison were behind a wave of jury duty scams targeting victims across the country, including Florida. Sarasota Detective Andrew Rowe says the jury duty scam network he has been investigating has moved staggering amounts of money. He said that “from September 2023 through roughly November 2024, $87 million flowed through one platform alone.”Rowe’s investigation began about two years ago and ultimately helped connect the scam calls to a Georgia prison. He believes roughly 90% of the scam jury duty calls hitting Central Florida trace back to the same perpetrators.The breakthrough came in January 2024, when a Sarasota woman received a call saying she had missed jury duty. Investigators say she was pressured into sending about $18,000 in bitcoin. Rowe and his partner traced the money to a woman in Macon, Georgia. She told police her boyfriend — who was incarcerated — was using cellphones inside the prison to run the scam.That raised a major question: How are inmates getting phones behind bars?Rowe says the investigation expanded quickly, including evidence suggesting contraband was being delivered by drones dropping bags containing items like phones and drugs. To confirm what they were hearing, Rowe says investigators received a call from the inmate. In the background, he says, they could hear the sounds of prison life: cell doors and inmates yelling.How the scam sounds so realDetectives say the scammers do their homework to make the calls convincing. They use real deputy names found on agency Facebook pages and spoof numbers. He says the inmates also pull personal details using online search tools.In one recent case reported in Volusia County, a scammer posed as the sheriff’s second-in-command, Chief Deputy Brian Henderson. A recording captured the fake message:”This is Chief Deputy Brian Henderson … Volusia County Sheriff’s Department. I need you to give me a call back.”Investigators say the voice was not Henderson’s.A local case tied to the Georgia inmatesMarion County deputies recorded at least one case believed to be linked to the same Georgia inmate group. In that case, a woman lost $4,000 after receiving a call that sounded legitimate and included personal information like her name, address and date of birth.When she told the scammer she was going to call her son, who works for the Marion County Sheriff’s Office, the report states the caller insisted there was no need, saying they had already spoken to him, even referencing him by name.Detectives say fear is the weapon. Victims are told they could be arrested if they do not comply, and many of the people targeted could lose their jobs if they were arrested for a felony. Rowe says scammers also appear to target people with professional licenses — such as medical licenses — because Florida’s public records make many of those details searchable.Investigators say it’s bigger than one caseIn the Sarasota investigation, indictments were secured for an inmate and his girlfriend, who are awaiting sentencing. However, Rowe says the operation likely extends beyond one couple.”This is much bigger. We have a pretty good suspicion that this is being done to support the gangs on the outside.”What you should doLaw enforcement’s message is simple: Do not send money, gift cards, or cryptocurrency to anyone saying you missed jury duty — and do not trust caller ID.If you get a call like this, hang up and contact your local sheriff’s office using a verified number from the agency’s official website.

    Those “jury duty” scam calls many Central Floridians have been getting may be coming from an unexpected place: a prison — linked to organized criminal networks.

    A joint investigation involving state and federal agencies found inmates inside a Georgia prison were behind a wave of jury duty scams targeting victims across the country, including Florida.

    Sarasota Detective Andrew Rowe says the jury duty scam network he has been investigating has moved staggering amounts of money. He said that “from September 2023 through roughly November 2024, $87 million flowed through one [pay] platform alone.”

    Rowe’s investigation began about two years ago and ultimately helped connect the scam calls to a Georgia prison. He believes roughly 90% of the scam jury duty calls hitting Central Florida trace back to the same perpetrators.

    The breakthrough came in January 2024, when a Sarasota woman received a call saying she had missed jury duty. Investigators say she was pressured into sending about $18,000 in bitcoin.

    Rowe and his partner traced the money to a woman in Macon, Georgia. She told police her boyfriend — who was incarcerated — was using cellphones inside the prison to run the scam.

    That raised a major question: How are inmates getting phones behind bars?

    Rowe says the investigation expanded quickly, including evidence suggesting contraband was being delivered by drones dropping bags containing items like phones and drugs.

    To confirm what they were hearing, Rowe says investigators received a call from the inmate. In the background, he says, they could hear the sounds of prison life: cell doors and inmates yelling.

    How the scam sounds so real

    Detectives say the scammers do their homework to make the calls convincing. They use real deputy names found on agency Facebook pages and spoof numbers. He says the inmates also pull personal details using online search tools.

    In one recent case reported in Volusia County, a scammer posed as the sheriff’s second-in-command, Chief Deputy Brian Henderson. A recording captured the fake message:

    “This is Chief Deputy Brian Henderson … Volusia County Sheriff’s Department. I need you to give me a call back.”

    Investigators say the voice was not Henderson’s.

    A local case tied to the Georgia inmates

    Marion County deputies recorded at least one case believed to be linked to the same Georgia inmate group. In that case, a woman lost $4,000 after receiving a call that sounded legitimate and included personal information like her name, address and date of birth.

    When she told the scammer she was going to call her son, who works for the Marion County Sheriff’s Office, the report states the caller insisted there was no need, saying they had already spoken to him, even referencing him by name.

    Detectives say fear is the weapon. Victims are told they could be arrested if they do not comply, and many of the people targeted could lose their jobs if they were arrested for a felony.

    Rowe says scammers also appear to target people with professional licenses — such as medical licenses — because Florida’s public records make many of those details searchable.

    Investigators say it’s bigger than one case

    In the Sarasota investigation, indictments were secured for an inmate and his girlfriend, who are awaiting sentencing. However, Rowe says the operation likely extends beyond one couple.

    “This is much bigger. We have a pretty good suspicion that this is being done to support the gangs on the outside.”

    What you should do

    Law enforcement’s message is simple: Do not send money, gift cards, or cryptocurrency to anyone saying you missed jury duty — and do not trust caller ID.

    If you get a call like this, hang up and contact your local sheriff’s office using a verified number from the agency’s official website.

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  • Scammers make threatening calls impersonating Volusia County law enforcement

    In Volusia County, scammers are impersonating law enforcement officers, threatening residents with jail time if they do not pay money, prompting a warning from Sheriff Mike Chitwood.”The scammers are good, they catch you on your heels,” said Volusia County Sheriff Mike Chitwood, expressing his frustration over the situation. He emphasized that the sheriff’s office does not operate in the manner the scammers suggest. “We do not come to your house and arrest you if you miss jury duty; we do not come to your house and tell you we can reduce your charges if you can give us x number of dollars. That is not how it works,” Chitwood said.Currently, one scammer is impersonating Chief Deputy Brian Henderson, the sheriff’s second in command. A recorded message falsely claims to be from Henderson, saying, “Yes, ugh, this is Chief Deputy Brian Henderson, Volusia County Sheriff’s Department. I need you to give me a call back.”Chitwood explained that using real names gives the scammers a sense of legitimacy. “It gives them validity because they check, do a cursory search, Google, and those names are going to come up. Think about this logically, why would the Chief of an organization call you up and ask for $5,000 and $10,000. Why?” he said.To protect themselves, Chitwood advised residents to simply hang up the phone. “Take ten seconds to hang up the phone, even if they are telling you not to, that’s all you got to do to protect yourself,” he said.Chitwood also had a message for the scammers: “Do you have a message for these guys? Yeah, if we track you down, we’re going to get your “Ironically, the very place scammers threaten to send their victims—jail—could be where the scammers themselves end up. Sheriff Chitwood noted that many of these scam calls originate from a prison in Georgia, where inmates use the money to buy snacks and clothes. Despite his pleas to government officials in Georgia to stop the calls, they continue.

    VOLUSIA COUNTY, Fla. —

    In Volusia County, scammers are impersonating law enforcement officers, threatening residents with jail time if they do not pay money, prompting a warning from Sheriff Mike Chitwood.

    “The scammers are good, they catch you on your heels,” said Volusia County Sheriff Mike Chitwood, expressing his frustration over the situation.

    He emphasized that the sheriff’s office does not operate in the manner the scammers suggest.

    “We do not come to your house and arrest you if you miss jury duty; we do not come to your house and tell you we can reduce your charges if you can give us x number of dollars. That is not how it works,” Chitwood said.

    Currently, one scammer is impersonating Chief Deputy Brian Henderson, the sheriff’s second in command.

    A recorded message falsely claims to be from Henderson, saying, “Yes, ugh, this is Chief Deputy Brian Henderson, Volusia County Sheriff’s Department. I need you to give me a call back.”

    Chitwood explained that using real names gives the scammers a sense of legitimacy.

    “It gives them validity because they check, do a cursory search, Google, and those names are going to come up. Think about this logically, why would the Chief of an organization call you up and ask for $5,000 and $10,000. Why?” he said.

    To protect themselves, Chitwood advised residents to simply hang up the phone.

    “Take ten seconds to hang up the phone, even if they are telling you not to, that’s all you got to do to protect yourself,” he said.

    Chitwood also had a message for the scammers: “Do you have a message for these guys? Yeah, if we track you down, we’re going to get your [expletive.]”

    Ironically, the very place scammers threaten to send their victims—jail—could be where the scammers themselves end up.

    Sheriff Chitwood noted that many of these scam calls originate from a prison in Georgia, where inmates use the money to buy snacks and clothes.

    Despite his pleas to government officials in Georgia to stop the calls, they continue.

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  • How scammers use the holiday season to steal your money, information

    Scammers particularly use the holiday season to steal your money and information.Hoping consumers will let down their guard, or just trying to spoof legitimate businesses, scammers will do everything they can to take advantage of your vulnerability or generosity.Chase and the Baltimore Police Department recently hosted a scam education event to show consumers how to protect themselves. Some of their tips are listed below.Holiday shopping: What to knowShop with trusted retailers: Stick to reputable websites when shopping online. If you’re unfamiliar with a store, search for its name along with terms like “scam,” “complaints” or “reviews” to uncover any red flags.Verify website URLs: Scammers can create fake websites that look like legitimate retailers. Ensure the URL starts with “https://” as the “s” stands for secure. Avoid clicking links from unsolicited emails or texts.Beware of unrealistic deals: Scammers lure buyers by offering massive discounts on popular or sold-out items. If a deal seems too good to be true, it’s likely a scam.How you pay matters: Credit cards and debit cards offer different protections than cash or payment transfer apps, like Zelle and Venmo. Remember, only use apps like Zelle to pay others you know and trust.Shopping on public Wi-Fi: Avoid connecting to public Wi-Fi when making an online purchase. Scammers can intercept your personal information on unsecured networks.Use digital tools: Trusted financial institutions offer credit and identity monitoring, including alerts to inform you when your data is exposed in a data breach or on the dark web.Online deals that are too good to be trueWhen shopping online or on social media, buy only from trusted websites and vendors. If purchasing on a marketplace, stay on the platform to complete transactions and communicate with sellers, as protections often only apply when you use the platform.Use payment methods that offer buyer protection. Never send money to strangers, particularly via payment-transfer apps like Zelle or Venmo, for purchases, especially when you can’t confirm the goods exist. Missed packages or problems with deliveryExpecting a package? Be cautious of phishing messages through email or text message that impersonate delivery services, like the U.S. Postal Service, UPS or FedEx, with links to view “missed deliveries.” These links may lead to fake sign-in pages to capture your actual password or to malware-infected sites.Do not respond to messages requesting personal or financial information, including money or cryptocurrency. Be wary of unexpected packages and avoid scanning QR codes, as they may be attempts to steal your information.Scams: Fake refunds, quishing, phishing/smishing, whalingRefund scams: Another scam doesn’t demand payment. Instead, it dangles a refund, sometimes via text messages posing as official messages from “Department of Taxation,” urging recipients to “click here to claim your refund.” The texts look legitimate at a glance, but they are designed to lure you into tapping a fraudulent link and handing over personal information. Cybersecurity experts are warning about scammers using QR codes to take advantage of unsuspecting victims. The practice called “quishing” uses a QR code that sends you to a dummy website to get your information — and money.When it comes to phishing, the term is more widely known, but people are still falling for it. Phishing emails or texts (known as “smishing”) attempt to trick a recipient into clicking a suspicious link, filling out information or downloading a malware file.Whaling attacks generally target leaders or other executives with access to large amounts of information at an organization or business. Whaling attacks can target people in payroll offices, human resources and financial offices as well as leadership. Video below: An expert’s tips to avoid falling for QR code scamsGift card scamsBe cautious about buying gift cards from third-party sites. Scammers will pre-save card details or sell expired cards.Don’t respond to an unsolicited email or text message offering you a gift card because it’s often a way to track your online activity.Don’t fall for scammers asking you to pay for services or goods using gift cards.Video below: Guide to selling gift cards securely onlinePhony charitiesThe holidays are also a season of giving, but before you donate money, double-check the contact and payment information for a charity.Beware of text, email or phone call solicitations. Like any other unsolicited message, don’t click on links or open attachments because they may contain malware or try to steal your information.Travel scamsScammers try to mimic or impersonate popular travel websites by recreating familiar branding, logos or company verbiage.As part of your travel research, do scam checks by looking up unfamiliar retail, travel and services websites by searching online for their names along with terms like “scam,” “complaints” or “reviews.”Chase advises using a credit card to book travel so that if an issue arises, you can dispute it.What to do if you fall victim to a scamVideo below: Steps to take immediately after falling for a scamStop communication: Discontinue all contact with the scammer immediately to prevent further damage.Document everything: Take note of all relevant information, including the scammer’s contact details and any information that may be useful when reporting the incident.Contact your bank: Report the incident and verify recent transactions to ensure there is no fraudulent activity on your account.Report the incident: File a police report or an inquiry to the Federal Trade Commission for official documentation.Monitor for identity theft: Sign up for credit and identity monitoring to receive alerts when your personal information has been leaked in a data breach or shows up on the dark web.Change your passwords: Update your online accounts by creating strong passwords, particularly if the scam involved accessing your personal information.Share your experience: Let friends and family know what happened to raise awareness about the signs of scams and help others avoid falling victim. Remember that financial scams can, and do, happen to anyone, so don’t feel embarrassed.Remain on high alert for follow-up scams: Scammers might attempt to target you again, especially if they know you’ve fallen victim before. Be cautious of unsolicited communications.

    Scammers particularly use the holiday season to steal your money and information.

    Hoping consumers will let down their guard, or just trying to spoof legitimate businesses, scammers will do everything they can to take advantage of your vulnerability or generosity.

    Chase and the Baltimore Police Department recently hosted a scam education event to show consumers how to protect themselves. Some of their tips are listed below.

    Holiday shopping: What to know

    Shop with trusted retailers: Stick to reputable websites when shopping online. If you’re unfamiliar with a store, search for its name along with terms like “scam,” “complaints” or “reviews” to uncover any red flags.

    Verify website URLs: Scammers can create fake websites that look like legitimate retailers. Ensure the URL starts with “https://” as the “s” stands for secure. Avoid clicking links from unsolicited emails or texts.

    Beware of unrealistic deals: Scammers lure buyers by offering massive discounts on popular or sold-out items. If a deal seems too good to be true, it’s likely a scam.

    How you pay matters: Credit cards and debit cards offer different protections than cash or payment transfer apps, like Zelle and Venmo. Remember, only use apps like Zelle to pay others you know and trust.

    Shopping on public Wi-Fi: Avoid connecting to public Wi-Fi when making an online purchase. Scammers can intercept your personal information on unsecured networks.

    Use digital tools: Trusted financial institutions offer credit and identity monitoring, including alerts to inform you when your data is exposed in a data breach or on the dark web.

    Online deals that are too good to be true

    When shopping online or on social media, buy only from trusted websites and vendors. If purchasing on a marketplace, stay on the platform to complete transactions and communicate with sellers, as protections often only apply when you use the platform.

    Use payment methods that offer buyer protection. Never send money to strangers, particularly via payment-transfer apps like Zelle or Venmo, for purchases, especially when you can’t confirm the goods exist.

    Missed packages or problems with delivery

    Expecting a package? Be cautious of phishing messages through email or text message that impersonate delivery services, like the U.S. Postal Service, UPS or FedEx, with links to view “missed deliveries.”

    These links may lead to fake sign-in pages to capture your actual password or to malware-infected sites.

    Do not respond to messages requesting personal or financial information, including money or cryptocurrency. Be wary of unexpected packages and avoid scanning QR codes, as they may be attempts to steal your information.

    Scams: Fake refunds, quishing, phishing/smishing, whaling

    Refund scams: Another scam doesn’t demand payment. Instead, it dangles a refund, sometimes via text messages posing as official messages from “Department of Taxation,” urging recipients to “click here to claim your refund.” The texts look legitimate at a glance, but they are designed to lure you into tapping a fraudulent link and handing over personal information.

    Cybersecurity experts are warning about scammers using QR codes to take advantage of unsuspecting victims. The practice called “quishing” uses a QR code that sends you to a dummy website to get your information — and money.

    When it comes to phishing, the term is more widely known, but people are still falling for it. Phishing emails or texts (known as “smishing”) attempt to trick a recipient into clicking a suspicious link, filling out information or downloading a malware file.

    Whaling attacks generally target leaders or other executives with access to large amounts of information at an organization or business. Whaling attacks can target people in payroll offices, human resources and financial offices as well as leadership.

    Video below: An expert’s tips to avoid falling for QR code scams

    Gift card scams

    Be cautious about buying gift cards from third-party sites. Scammers will pre-save card details or sell expired cards.

    Don’t respond to an unsolicited email or text message offering you a gift card because it’s often a way to track your online activity.

    Don’t fall for scammers asking you to pay for services or goods using gift cards.

    Video below: Guide to selling gift cards securely online

    Phony charities

    The holidays are also a season of giving, but before you donate money, double-check the contact and payment information for a charity.

    Beware of text, email or phone call solicitations. Like any other unsolicited message, don’t click on links or open attachments because they may contain malware or try to steal your information.

    Travel scams

    Scammers try to mimic or impersonate popular travel websites by recreating familiar branding, logos or company verbiage.

    As part of your travel research, do scam checks by looking up unfamiliar retail, travel and services websites by searching online for their names along with terms like “scam,” “complaints” or “reviews.”

    Chase advises using a credit card to book travel so that if an issue arises, you can dispute it.

    What to do if you fall victim to a scam

    Video below: Steps to take immediately after falling for a scam

    Stop communication: Discontinue all contact with the scammer immediately to prevent further damage.

    Document everything: Take note of all relevant information, including the scammer’s contact details and any information that may be useful when reporting the incident.

    Contact your bank: Report the incident and verify recent transactions to ensure there is no fraudulent activity on your account.

    Report the incident: File a police report or an inquiry to the Federal Trade Commission for official documentation.

    Monitor for identity theft: Sign up for credit and identity monitoring to receive alerts when your personal information has been leaked in a data breach or shows up on the dark web.

    Change your passwords: Update your online accounts by creating strong passwords, particularly if the scam involved accessing your personal information.

    Share your experience: Let friends and family know what happened to raise awareness about the signs of scams and help others avoid falling victim. Remember that financial scams can, and do, happen to anyone, so don’t feel embarrassed.

    Remain on high alert for follow-up scams: Scammers might attempt to target you again, especially if they know you’ve fallen victim before. Be cautious of unsolicited communications.

    Source link

  • Sacramento police arrest Yuba City man for alleged $30,000 scam

    HE IS, CALL THE STANISLAUS COUNTY SHERIFF’S OFFICE. SACRAMENTO POLICE ARRESTED A MAN SUSPECTED OF SCAMMING A WOMAN OUT OF NEARLY $30,000. TODAY, SACRAMENTO POLICE ANNOUNCING THEY ARRESTED 36 YEAR OLD BALWINDER SINGH OF YUBA CITY. HE WAS BOOKED ON FELONY CHARGES. POLICE RELEASING THIS PHOTO OF MONEY. OFFICERS SAY THE SUSPECT HAD. RENEE THOMAS TOLD US IT STARTED WITH AN EMAIL THAT SHE THOUGHT WAS FROM PAYPAL. WE SPOKE WITH HER LAST MONTH, THE SCAMMER TOLD THOMAS HER IDENTITY AND INFORMATION HAD BEEN USED TO OPEN 22. PAYPAL ACCOUNTS AND PROMISED TO HELP AND TOLD HER TO WITHDRAW HER LIFE SAVINGS AND CASH. AND THEN THEY CAME TO HER HOUSE TO TO PICK IT UP. ONLINE SCAMS CAN BE INHERENTLY CHALLENGING. IT’S SOMETHING THAT HAPPENS OVER THE INTERNET, SO NOT NOTHING THAT YOU KNOW THAT IS EASILY TRACKED FACE TO FACE. IN THIS CASE, WE WERE ABLE TO LOCATE THE SUSPECT’S VEHICLE. TECHNOLOGY CAN BE A CHALLENGING POINT FOR THE ELDERLY COMMUNITY, UNDERSTANDABLY. AND SO A LOT OF TIMES THEY DO FALL VICTIM TO THESE INTERNET TYPE OF PHISHING SCAMS. WELL, POLICE SAY THEY ARE HOLDING CASH AS EVIDEN

    Sacramento police arrest Yuba City man for alleged $30,000 scam

    Updated: 10:57 PM PDT Sep 23, 2025

    Editorial Standards ⓘ

    Sacramento police arrested 36-year-old Balwinder Singh of Yuba City on felony charges, suspecting him of scamming a woman out of her life savings.Last month, KCRA 3 spoke to Rhane Thomas, the victim, who said it started with an email she believed was from PayPal. The accused scammer told Thomas her identity and information had been used to open 22 PayPal accounts, promised to help, and instructed her to withdraw her life savings in cash, which he then collected from her home.Thomas shared her surveillance video with KCRA 3, which captured the moment she walked up to the car and handed over a box she said contained $28,000.Allison Smith, spokesperson with Sacramento Police, said identifying the vehicle was a key part of the investigation. “Online scams can be inherently challenging. It’s something that happens over the Internet,” said Smith. “In this case, we were able to locate this suspect’s vehicle.”Police say the cash is being held as evidence. “We do need all of that information for evidence for future prosecution,” said Smith. “In terms of like the timelines of things of when people are getting their finances back, that’s hard to say.”See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

    SACRAMENTO, Calif. —

    Sacramento police arrested 36-year-old Balwinder Singh of Yuba City on felony charges, suspecting him of scamming a woman out of her life savings.

    Last month, KCRA 3 spoke to Rhane Thomas, the victim, who said it started with an email she believed was from PayPal.

    The accused scammer told Thomas her identity and information had been used to open 22 PayPal accounts, promised to help, and instructed her to withdraw her life savings in cash, which he then collected from her home.

    Thomas shared her surveillance video with KCRA 3, which captured the moment she walked up to the car and handed over a box she said contained $28,000.

    Allison Smith, spokesperson with Sacramento Police, said identifying the vehicle was a key part of the investigation.

    “Online scams can be inherently challenging. It’s something that happens over the Internet,” said Smith. “In this case, we were able to locate this suspect’s vehicle.”

    Police say the cash is being held as evidence.

    “We do need all of that information for evidence for future prosecution,” said Smith. “In terms of like the timelines of things of when people are getting their finances back, that’s hard to say.”

    See more coverage of top California stories here | Download our app | Subscribe to our morning newsletter | Find us on YouTube here and subscribe to our channel

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  • Scammers exploit bitcoin ATMs. Will new California laws help crack down on fraud?

    Scammers exploit bitcoin ATMs. Will new California laws help crack down on fraud?

    Jim Meduri answered a terrifying phone call in January from a man pretending to be his son.

    The caller, who sounded on the verge of tears, said he’d been in a car accident. Meduri was convinced his son had been arrested for driving under the influence and injuring a pregnant woman and her daughter.

    The San Jose resident later spoke to people impersonating a defense attorney and a courthouse clerk, who told him his son might be sent from the Bay Area to Nevada because of an mpox outbreak at the jail. Panicked and in a rush, Meduri agreed to send bail money through cryptocurrency. The fake lawyer directed Meduri, 65, to an ATM where people can buy the digital currency bitcoin. He inserted $15,000 in cash into the machine, scanned a code provided by the scammers and transferred the money.

    When Meduri realized he’d been duped, his money was gone.

    “They played on fear and what a parent would do to help their kid, and it was elaborate,” said Meduri, who was able to get most of his money back with help from the Santa Clara County district attorney’s office.

    Meduri’s misfortune is just one example of how scammers are using bitcoin ATMs to swindle victims out of thousands of dollars, fraud that law enforcement officials warn is on the rise.

    The machines, in convenience stores, gas stations and even bakeries, are an easy way for people to buy cryptocurrency quickly with cash, which is harder to track than a wire transfer or check. As scammers exploit the convenience these machines provide, bitcoin ATMs are also attracting the attention of lawmakers, regulators and consumer advocacy groups looking to protect people from fraud and exorbitant fees.

    Starting in January, California will limit cryptocurrency ATM transactions to $1,000 per day per person under Senate Bill 401, which Gov. Gavin Newsom signed into law. Some bitcoin ATM machines advertise limits as high as $50,000. The new law also bars bitcoin ATM operators from collecting fees higher than $5 or 15% of the transaction, whichever is greater, starting in 2025. Legislative staff members visited a crypto kiosk in Sacramento and found markups as high as 33% on some digital assets when they compared the prices at which cryptocurrency is bought and sold. Typically, a crypto ATM charges fees between 12% and 25% over the value of the digital asset, according to a legislative analysis.

    “This bill is about ensuring that people who have been frauded in our communities don’t continue to watch our state step aside when we know that these are real problems that are happening,” said state Sen. Monique Limón (D-Goleta), who co-authored the bill.

    Although similar scams have existed long before the rising popularity of cryptocurrency, the use of these digital assets by fraudsters has been increasing, according to the Federal Trade Commission. Since 2021, more than 46,000 people reported losing over $1 billion in crypto to scams, the agency reported in 2022.

    Victims of bitcoin ATM scams say limiting the transactions will give people more time to figure out they’re being tricked and prevent them from using large amounts of cash to buy cryptocurrency. But crypto ATM operators say the new laws will harm their industry and the small businesses they pay to rent space for the machines. There are more than 3,200 bitcoin ATMs in California, according to Coin ATM Radar, a site that tracks the machines’ locations.

    “This bill fails to adequately address how to crack down on fraud, and instead takes a punitive path focused on a specific technology that will shudder the industry and hurt consumers, while doing nothing to stop bad actors,” said Charles Belle, executive director of the Blockchain Advocacy Coalition.

    While California lawmakers have striven to balance the need to support the cryptocurrency industry and protect consumers, recent legislation has hewed toward tighter state regulation. Another law would by July 2025 require digital financial asset businesses to obtain a license from the California Department of Financial Protection and Innovation.

    When signing the legislation, Assembly Bill 39, Newsom included a message that said the law needed further refinement to provide clarity to consumers, businesses and state regulators.

    “It is essential that we strike the appropriate balance between protecting consumers from harm and fostering a responsible innovation environment,” he wrote.

    In 2022, months before the collapse of cryptocurrency exchange FTX, Newsom vetoed a similar bill that would have required cryptocurrency companies to get a state license, citing concerns a new regulatory program would be costly and the actions were premature.

    Erin West, a Santa Clara County deputy district attorney who helped Meduri recover his money, said scammers turn to bitcoin ATM machines because they accept large amounts of cash. The value of bitcoin can also rise, giving fraudsters a way to increase their plunder.

    Scammers use different tactics to trick people into handing over their money, including creating a false sense of urgency and winning over their trust. Some befriend or seduce their victims through social media or dating apps, luring them into a web of lies that include fake emergencies. Other times, the scam starts with a text message directing victims to a fake cryptocurrency investment site.

    West said her team has been able to recover $2.5 million for scam victims like Meduri by tracking down the cryptocurrency exchange that was involved in the transaction. After Meduri put $15,000 into a kiosk operated by Bitcoin ATM Services, the digital money ended up in the cryptocurrency exchange Binance. The exchange complied with a search warrant, allowing her team to retrieve the stolen funds from Binance and return them to Meduri.

    Although it’s possible for cryptocurrency victims to get their money back even if it travels overseas, West said it’s rare. Some cryptocurrency exchanges are more cooperative with law enforcement than others, she said.

    “This whole thing is a speed game,” said West, who is part of a task force called REACT — Regional Enforcement Allied Computer Team — that combats high-tech crimes. “Can we get the victim in front of a competent investigator who knows how to find things on the blockchain in the least amount of time?” Blockchain is a type of shared digital database that stores information about crypto transactions.

    An 80-year-old retired teacher in Los Angeles, whom The Times previously interviewed, said she hasn’t been able to recover $69,000 she sent to scammers through a bitcoin ATM over multiple days in May. The stolen funds ended up in Seychelles-based cryptocurrency exchanges KuCoin and Huobi.

    The scam started when Mrs. K, who wants to remain anonymous because she’s more wary about giving out her personal information, got a loud pop-up alert that her computer was infected with a virus. After calling a fake tech support number and later talking to a person impersonating the FBI, Mrs. K thought her Chase bank account had been taken over by foreign Chinese hackers involved in a child pornography case. To keep up the elaborate ruse, the scammers also sent Mrs. K fake Chase bank emails.

    “If it wasn’t this convoluted mishmash, I probably would have been a little smarter and not fallen into this trap,” Mrs. K said. “I feel so disappointed in myself that I just fell hook, line and sinker.”

    Mrs. K said the FBI impersonator told her to withdraw $75,000 in cash over three days from her Chase checking account and not tell anyone. If workers at the bank asked, the scammer told Mrs. K to say that she was withdrawing cash for construction.

    The FBI impersonator convinced Mrs. K she could help law enforcement catch the child predators if she converted the cash to cryptocurrency and transferred the funds to a digital wallet the agency would monitor. The intricate lie eventually led Mrs. K to a Coinhub Bitcoin ATM machine at a doughnut shop in Highland Park that accepts up to $25,000 in cash daily per person.

    By the time she realized it was a scam, Mrs. K had sent $69,000 to the fraudsters. She reported the crime to police but hasn’t been able to recover her money.

    Under federal law, bitcoin ATM operators are typically considered money services businesses, so they’re required to register with the U.S. Department of Treasury’s Financial Crimes Enforcement Network, or FinCEN. The agency collects and analyzes financial information to combat money laundering and other illegal uses. The businesses must also maintain an anti-money-laundering program and report suspicious activity to the agency.

    Logan Short, the chief executive of LSGT Services, which does business as Coinhub Bitcoin ATM, said in an email the company does “everything in its power to protect consumers, but unfortunately fraud is not 100% preventable in any industry.” The Las Vegas company is registered with FinCEN but faced allegations that it operated crypto ATM machines in Connecticut without the required state license.

    Bitcoin ATM Services, which operates the kiosk used by Meduri, says on its website that it is registered with FinCEN. The Times couldn’t find a record of Bitcoin ATM Services being registered as a money services business with FinCEN. A company called Cash ATM Services that has the same mailing address as Bitcoin ATM Services was registered. Bitcoin ATM Services did not respond to a request for comment.

    Law enforcement has cracked down on unlicensed crypto ATMs,but it can be tough for consumers to tell how serious the industry is about addressing the concerns. In 2020, a Yorba Linda man pleaded guilty to charges of operating unlicensed bitcoin ATMs and failing to maintain an anti-money-laundering program even though he knew criminals were using the funds. The illegal business, known as Herocoin, allowed people to buy and sell bitcoin in transactions of up to $25,000 and charged a fee of up to 25%.

    Cryptocurrency regulations vary by state. California has long exempted crypto ATMs from licensing requirements for businesses engaged in money transmission.

    Crypto ATM machines serve people who don’t have a bank account or just want the convenience of buying cryptocurrency at a gas station, convenience store or other shop, said Ayman Rida, CEO of Cash2Bitcoin, who works with cryptocurrency ATM operators including in California on complying with state regulations. The fees ATM charge are higher than online exchanges, he said, to cover certain expenses. That includes the cost of leased space, machine maintenance and cash management.

    Crypto ATM operators aren’t opposed to having clearer rules and guidelines, he said, but they are against capping fees and transactions. Crypto ATM operators typically require more forms of identification if a customer makes a transaction of more than $1,000, and in some cases flag high-value transactions, which could help stop scammers.

    “Scammers are getting smarter,” he said. “My question for the regulators is, why are you killing an industry when scams also happen to other industries but they’re not doing anything about it as well?”

    As for Meduri, he’s just relieved his son wasn’t really arrested and in a car accident. Oddly enough, finding out it was all an elaborate lie came with a sense of relief.

    “My wife and I were just wrecked that day,” he said. “I didn’t even care. I was happy he was OK.”

    Queenie Wong

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