COLORADO (KXRM) — The “numbers are staggering,” said Brian Blauser, Supervisory Special Agent for FBI Denver’s Financial Crimes Unit, who spoke to FOX21 News on Monday, April 15 about millions of dollars stolen from Coloradans in 2023 by scammers.

Ways scammers targeted Coloradans in 2023

According to FBI Denver, last year scammers stole $187,621,731 from 11,475 Colorado victims, ranking Colorado seventh in the U.S. for complaints per capita. The top three schemes representing the largest losses in 2023, were; investment fraud, business email compromise (BEC), and tech support.

Courtesy: IC3, the table shows ‘Crime Type by Victim Loss’ from 2023 in Colorado.

Investment Fraud

According to Blauser, the most common type of investment fraud is through cryptocurrency scams, specifically a variant of the “Pig Butchering” scam.

How does it start?

According to FBI Denver, victims are being approached on social media, dating apps, or discussion forums with an opportunity to invest in cryptocurrency. The victim is then sent a fraudulent link or phone number to set up an investment account, controlled by scammers, who disappear with the money once the victim transfers funds.

“They, [being] the bad guys, who control the investment site that you’re able to login to, can make whatever numbers they want to show in your account, so they will make it look like you’re making an absolute killing on your investments,” said Blauser.

How are they stealing so much money?

Blauser warned that when victims become wary, scammers know what to do.

“They may even allow [the victim] to withdraw funds,” said Blauser. “And I’ve seen people take out second mortgages [and] deplete their 401K… and so it can be very devastating and has been very devastating to a lot of the victims out there.”

Scammers will continue to steal from victims, according to Blauser, by telling them they have to pay taxes and fees to get their money.

“The bad guys will say, ‘Oh, you have to pay a tax related to this,’ [or] ‘Oh, your account has been flagged for money laundering and you need to pay ‘X’ amount of fees to get yourself off the flagging list,” said Blauser. “And again, they are just getting even more money from you and you’ll never be able to withdraw anything because there’s no availability to do so.”

How to avoid becoming a victim:

Blauser said to avoid becoming a victim; be wary about what’s being pitched to you, that there’s “No such thing as a guaranteed return,” and if you receive unsolicited text messages—it’s probably a scam.

Business Email Compromise or BEC

These scams have been around for a while, according to Blauser, but are still “wildly successful.”

“By and large somebody’s email credentials are likely being compromised and the bad guys can monitor [the victim’s] email account,” said Blauser, who added that BEC scams often target law firms, title companies, and banks.

How are BEC scams impacting the housing market?

BEC scams are also frequently seen in real estate. Blauser said the scammer will register an email domain that appears to be similar to a victim’s and will send the would-be buyer an email, which will specify how much they owe and where to send it.

“And because they have been able to compromise somebody’s email account, they will know almost the exact dollar amount of the down payment,” said Blauser.

How to spot the warning signs:

To avoid becoming a victim of a BEC scam, Blauser said to always check email addresses closely, follow up the email with a call to prior contacts, but do not call the phone number listed in the suspicious email, and be careful what you’re clicking on especially if you receive an unsolicited email with links included.

Tech Support

A more recent scam, which increased during the COVID-19 pandemic, according to Blauser, is using fake tech support to dupe a victim.

How does it work?

Scammers send an email that appears to be from Amazon or a victim’s bank, that asks about a recent purchase or wire transfer and whether it’s legit. The email will provide contact information to the victim, who is prompted to call the number to get things resolved.

“So really their whole point in however they are initiating the scam is to get you to contact a phone number that they are in control of,” warned Blauser.

What are the other ways scammers can do this?

These scams can also appear as a pop-up on a victim’s computer that says it has been affected by a virus.

Once the scammer is able to access a victim’s computer or get them on the phone, a scam dubbed “The Phantom Hacker,” comes into play. Essentially, the scam is designed to make people believe their financial accounts have been hacked and get them to move their money to an account controlled by the scammers.

“We’ve seen staggering losses to individuals who have wired their life savings or retirement accounts because they think that their accounts were compromised,” said Blauser. “And the bad guys are going to get you to wire any funds that you potentially have to a bank account that they control.”

How can I protect myself?

To avoid becoming a victim, Blauser said never to call the phone number on a suspicious email but instead, grab your bank statement or look up your Amazon account and contact support from an independently verified source outside of the email. Blauser added, that you should always be very careful with whom you are sharing your personal identifying information.

What are the age groups being impacted most?

According to 2023 data from the FBI Internet Crime Complaint Center, the group of people most impacted were those 60 years and older, which Blauser said is often the case as they are the ones who have accumulated the most savings throughout their lives, so because of that, they are targeted.

If you believe you are a victim of any of the scams listed above or another financial scam not listed, file a complaint with the FBI’s Internet Crime Complaint Center, via www.ic3.gov. If you feel threatened in any way, contact your local law enforcement.