Increasing Fraud Reports in Montezuma County
A Cortez resident recently reported losing over $600,000, believing he was investing in legitimate cryptocurrencies. Authorities suspect this was part of a larger scheme where victims’ accounts were used to launder money.
The man recounted to Deputy Daniel Lewis that the situation began when he received a text from a woman named “Emily Lee.” She urged him to invest in gold through platforms like Bluecoin (BLU) and OKCoin.com.
According to the report, the operation involved making false promises of over $1.3 million in profits, requiring upfront fees for cash withdrawals, and featuring a fake financial website.
This incident is among many reported scams in Montezuma County, where people are frequently targeted by those impersonating utility workers, landlords, and others.
Local businesses and law enforcement are aware that these scams are becoming more sophisticated, often putting pressure on victims to hand over money or sensitive information before they realize they’ve been duped.
In another report from January 5, a Cortez woman claimed she was scammed out of $1,620 by someone pretending to be from her mortgage company.
A separate case from December involves a Mancos resident who sent $750 in gift cards to a scammer named Michael Brooker, believing he was dealing with a property owner regarding rent, but never received a follow-up.
Last month, a local media company reported a loss of $276,000 to a scammer posing as a representative from Alpine Bank, who gained access to an employee’s account details.
John Brace, CEO of Ballantine Communications, mentioned that the claim was eventually settled, totaling around $271,000 after a $5,000 wire transfer fee. He noted that the overall industry is focusing on improving their tactics.
Sheriff Steve Nowlin indicated that these types of fraud are rising annually and appear unlikely to diminish. He highlighted that Montezuma County sees multiple fraud reports each week, affecting both older and younger residents.
Most scams, Nowlin said, are related to individuals giving out too much personal information. He advised anyone contacted by supposed representatives of banks or utilities to verify their identity by reaching out to the company directly.
“We’re noticing increased insurance fraud, particularly targeting those enrolled in Medicare or Medicaid,” he remarked, urging people not to divulge personal information easily.
Inside the Scam
The victim reported transferring about $617,000 over several months, believing he was generating around $1.3 million in profits.
Bank statements revealed significant amounts deposited into his account, which were subsequently transferred elsewhere. Authorities suspect this was a money-laundering operation using the victim’s banking activity.
He managed to make two smaller withdrawals—$100 in October and $20,000 later—but was then told he needed to pay a 20% fee to access the larger balance. When he was unable to pay this upfront fee, he was advised to take cash from his mortgage line.
Though deputies requested to see any documentation regarding the fee, the man couldn’t find anything supporting such claims. Alarmingly, when he checked the form in his OKCoin app, the page was blank.
Later discussions clarified that while OKCoin is indeed a legitimate cryptocurrency exchange, the version the victim interacted with was unauthorized.
Investigators noted that the initial contact with Emily Lee was dubious; she never verified her credentials, and their communications were primarily via calls and messaging apps.
This case is currently ongoing.
Challenges in Addressing Cyber Fraud
Nowlin observed that only a handful of incidents lead to accountability, with many cases of fraud going unresolved. His office lacks specialized cybercrime resources.
“We’re doing the best with what we have and depend on assistance from federal or state agencies,” he stated, mentioning collaboration with organizations like the Colorado Bureau of Investigation and the FBI.
Timely reporting is critical for potential recovery of lost funds, as banks or credit card companies might be able to reverse some transactions if flagged early.
