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A Florida man lost $22,000 to scammers who impersonated Federal Trade Commission agents and convinced him to deposit cash into a Bitcoin ATM after claiming he was under investigation for money laundering.
The case, reported to West Palm Beach police this week, began with a fraudulent Amazon text message and escalated through spoofed government phone numbers—a tactic authorities say is becoming increasingly common as crypto-related fraud nationwide surpassed $9 billion last year.
Police say the latest Bitcoin fraud scheme began when the victim received a fake Amazon message claiming his account had been compromised. Moments later, the phone rang with a Washington, D.C. number.
On the line was a man claiming to be “Agent John Krebs” of the Federal Trade Commission.
Investigators believe the scammer used spoofing tools to mimic government caller IDs — a common tactic in Bitcoin fraud scheme operations.
According to West Palm Beach Police, the fake agent told the man he was under investigation for money laundering and needed to act immediately to avoid arrest.
The victim was instructed to deposit $22,000 into a Bitcoin ATM at a gas station along South Dixie Highway — a classic, high-pressure mechanism used in many Bitcoin fraud scheme cases.
West Palm Beach Police spokesperson Rachel Leitao issued a blunt warning to citizens:
“No government agency is going to contact you if you need to make a payment at a Bitcoin kiosk. That is a red flag,” she said, urging residents to stop sending Bitcoin to criminals who claim they can fix financial issues.
Leitao said Bitcoin fraud scheme calls typically spike during the holiday season, when criminals know seniors are distracted and often isolated.
Another victim, John Klingel, said he lost $38,000 to a similar operation.
“These scammers are crafty and slick — they’ll stop at nothing to convince you to pay the fees,” Klingel told local reporters.
Police say both cases involve identical psychological manipulation used in nearly all Bitcoin fraud scheme incidents.
The surge in Bitcoin fraud scheme cases mirrors national data. According to the American Association of Retired Persons (AARP), more than $9.3 billion in digital-asset-related fraud was reported across the U.S. last year. Seniors aged 60 and above accounted for $2.8 billion of those losses.
Experts say elderly victims are disproportionately targeted due to fear-based intimidation tactics, impersonation of authority figures, and unfamiliarity with cryptocurrency systems — core strategies used in almost every Bitcoin fraud scheme.
To counter the rise in Bitcoin fraud scheme incidents, West Palm Beach Police have launched Operation Senior Shield, a free alert system designed to inform elderly residents about ongoing scams.
“It really focuses on making sure there’s awareness surrounding these financial and fraud scams,”
Leitao said.
Klingel, still shaken by his experience, said he plans to sign up for the program immediately.
Police confirmed the investigation into the $22,000 case is ongoing, and new alerts under Operation Senior Shield are expected to roll out next month.
Authorities have also released prevention guidelines urging residents to:
Police say following these steps could prevent countless Bitcoin fraud scheme losses in the months ahead.
As Bitcoin fraud scheme cases surge, police say the fight is far from over. With scammers growing bolder and seniors increasingly targeted, authorities warn that vigilance is now the community’s strongest defense.
As investigations continue, West Palm Beach officials insist one message is clear: if someone demands Bitcoin, it’s already a scam.
