Crypto News

Protecting Seniors: The Rising Threat of Crypto Scams and Jury Duty Impersonation in America

February 17, 2025
Smart Money

Rising Concerns Over Cryptocurrency Scams Targeting Seniors in South Carolina

HILTON HEAD, S.C. — In a disturbing trend, scammers are increasingly targeting seniors in South Carolina with crypto-related schemes, including an alarming jury duty scam that has left victims like 66-year-old Marianne devastated. A retired healthcare worker, Marianne was deceived after receiving a phone call from someone claiming to be with the Beaufort County Sheriff’s Office, accusing her of missing jury duty. The con artist informed her that she could avoid jail time by paying a $7,500 bond.

The Con Game

On that November morning, Marianne was initially skeptical. However, the pressure mounted when she was connected to a supposed supervisor who insisted on the urgency of the situation. Believing that she had no choice, she withdrew the cash from her bank, consisting of $50 and $100 bills, and followed their instructions to deposit the money into a Coinstar ATM at a local Food Lion grocery store.

Once deposited, her cash was converted to cryptocurrency and transferred directly to a scammer’s digital wallet. Compounding her distress, the scammer then demanded an additional $3,000. Feeling uneasy, Marianne decided to reach out to the Beaufort County Sheriff’s Office directly, only to be informed that she had fallen victim to a common scam.

The Rise of Cryptocurrency Scams

Marianne’s experience is part of a worrying trend that has seen scams involving cryptocurrency kiosks become increasingly common across the United States. With around 30,000 bitcoin ATMs in the country, the accessibility of these machines has given rise to a new wave of scams. Victims are often manipulated into believing they are paying fines or bailing out loved ones, with their funds ultimately ending up in scammers’ hands.

According to data from the Federal Trade Commission (FTC), reported losses in scams involving crypto kiosks soared from $12 million in 2020 to a staggering $114 million in 2023. Residents of Beaufort County alone reported losses of $3.1 million from cryptocurrency scams last year.

Educating the Community

In response to the rising incidents, local law enforcement, including Lieutenant Eric Calendine of the Beaufort County Sheriff’s Office, has been actively engaging the community. During a recent meeting in Sun City, a retirement community near Hilton Head, Calendine warned residents about the evolving tactics of scammers and what signs to watch for.

“It’s easier to take your money than to rob a bank,” Calendine noted, emphasizing that seniors are often targeted due to the savings they’ve accumulated over their lifetimes.

Legislative Actions and Recommendations

Advocates for consumer protection, like Carri Grube Lybarker from the South Carolina Department of Consumer Affairs, are urging state lawmakers to take action. Lybarker mentioned, “The problem is already there, but it can certainly get bigger over time.”

In recognition of the risks, Senator Dick Durbin and six others contacted major cryptocurrency ATM operators last fall to inquire about how they prevent fraud, especially targeting senior citizens. Although some companies have implemented security measures—such as on-screen warnings and requiring older customers to communicate with agents before completing transactions—more comprehensive regulation remains a pressing demand.

Personal Stories of Loss

Victims like an 80-year-old retired banker from Beaufort County, who lost $31,000, reveal how deeply these scams can affect individuals. After being manipulated into believing he had to close his bank account to protect his assets, he followed the scammer’s instructions to withdraw the money and feed it into a bitcoin ATM. Despite the boldness of the crime, he has yet to recover his lost funds.

Reflections on these scams often leave victims grappling with feelings of shame, anger, and helplessness. “My ability to go to Savannah, Georgia, and buy $31,000 worth of bitcoin through a machine, all in a manner of an hour or so—that should probably be regulated,” the retired banker stated.

The Need for Vigilance

As the situation continues to evolve, experts emphasize the importance of public awareness and education. The AARP fraud hotline has been receiving daily reports of similar scams associated with bitcoin ATMs, reinforcing the idea that a lack of oversight can make seniors particularly vulnerable.

With scammers employing ever-more sophisticated techniques, it’s crucial for communities to come together in disseminating information about how to recognize and avoid such scams. Only through education and vigilance can potential victims be safeguarded from becoming the next target in this burgeoning world of cryptocurrency fraud.