Fraud Reports on the Rise
Sheriff reports that fraud cases come in multiple times each week.
Recently, a man from Cortez claimed to have lost over $600,000, believing he was investing in cryptocurrencies through credible sources. Authorities suspect this might be part of a larger network that utilizes victims’ accounts to launder money.
On January 9, the man informed Montezuma County Sheriff’s Deputy Daniel Lewis about an incident that started when he received a text from a woman named “Emily Lee.” According to the sheriff’s report, she convinced him to invest in gold using cryptocurrencies like Bluecoin (BLU) and OKCoin.com.
The scam appears to have involved over $1.3 million in fabricated profits, requiring upfront payments to withdraw cash, along with a fraudulent website masquerading as a legitimate financial entity.
This incident is one of many recent scams reported in Montezuma County, where residents are often targeted by scammers pretending to be utility workers, landlords, mortgage professionals, or bank staff.
Law enforcement and local business owners note that these schemes are becoming increasingly sophisticated, catching victims off guard and urging them to provide funds or personal information before they even realize they’re being scammed.
For instance, on January 5, a Cortez woman reported losing $1,620 to someone impersonating an employee from her mortgage company. In another case on December 10, a Mancos resident sent a $750 gift card to a scammer who claimed to be Michael Brooker, the property owner, but received no follow-up.
Last month, Ballantine Communications disclosed a $276,000 loss in a scam where someone impersonated an Alpine Bank representative and extracted account details from a BCI employee.
Ballantine’s CEO, John Brace, mentioned that they had resolved the claim and viewed the outcome positively. This settlement amounted to $271,000, reflecting a $5,000 wire transfer fee.
Brace commented on the ongoing efforts within the industry to enhance their tactics.
Residents Urged to Verify Callers
Montezuma County Sheriff Steve Nowlin pointed out that such fraud is on the rise yearly and “is not going away anytime soon.”
He noted that the county responds to fraud reports several times a week, and while older individuals are often targeted, younger residents are also falling victim.
Nowlin indicated that most scams hinge on victims sharing excessive personal information.
He advised people to hang up and verify with official contact numbers if they suspect a scam from an insurance company, utility provider, or bank.
“We’re seeing a growing trend in insurance fraud, particularly with those enrolled in Medicare or Medicaid,” Nowlin mentioned, stressing the importance of withholding personal information and verifying with trusted entities.
Inside the Cryptocurrency Scheme
The victim explained to deputies that he invested around $617,000 over several months, believing these investments had generated approximately $1.3 million in profits.
The report indicates that he provided numerous bank statements documenting large deposits—up to $200,000—transferred to other accounts.
Authorities suspect his account was used primarily to launder money. He managed to make two withdrawals—a $100 withdrawal in October and a $20,000 withdrawal early last month. However, when he attempted to withdraw his remaining balance, he was informed that he would have to pay a 20% fee due to his earnings surpassing $500,000.
Investigators noted that the company refused to deduct this fee from the balance and instead demanded an upfront cash payment. Lacking the funds, the scammers advised him to utilize his mortgage line to cover the upfront cost.
Deputies asked for documentation supporting the 20% commission requirement, but the victim could not find any associated contracts or clauses. When he tried to access forms in his OKCoin app, the webpage was blank.
Later, agents confirmed that OKCoin is a legitimate cryptocurrency exchange, but the version the man accessed was counterfeit.
Investigators also revealed that the victim had never met Lee, the woman who contacted him, and she hadn’t offered any credentials to authenticate her identity. Their interaction was limited to phone calls and specific texting apps.
This case is still under investigation.
Challenges in Addressing Cyber Fraud
Nowlin remarked that only a few cases lead to accountability, and many frauds remain unidentified. He noted that his office lacks a dedicated cybercrime unit.
“We’re doing our best with our available resources. We often rely on assistance from other agencies, whether they are state or federal, such as the Colorado Bureau of Investigation or the FBI,” he explained.
He emphasized the importance of reporting incidents promptly to facilitate potential fund recovery, as banks or credit card companies may be able to reverse transactions in some situations.
