WEST PALM BEACH, Fla. — A West Palm Beach man in his late 70s lost $22,000 after falling victim to a sophisticated Bitcoin scheme that began with a fake Amazon fraud alert, police said.
It all started with a fraudulent text message appearing to come from Amazon, claiming the victim’s account had been compromised. The victim then received calls from someone identifying himself as “Agent John Krebs” with the Federal Trade Commission, calling from a Washington, D.C. number.
The caller told the man he was under investigation for money laundering and directed him to deposit $22,000 into a Bitcoin ATM at a gas station along South Dixie Highway in West Palm Beach to resolve the matter.
“No government agency is going to contact you that you need to make a payment at a Bitcoin kiosk. That is a red flag,” said Rachel Leitao, public information officer with the West Palm Beach Police Department.
Police are now warning residents about the increasing number of fraudulent schemes during the holiday season.
“We see an uptick in scams like this around the holiday season,” Leitao said.
The warning comes as cryptocurrency-related fraud continues to surge nationwide. The American Association of Retired Persons reports $9.3 billion was lost last year due to cryptocurrency-related fraud, with those 60 or older losing $2.8 billion of that total.
John Klingel, another local victim, told WPTV in April that he lost approximately $38,000 to fraudsters who pressured him to deposit money into a Bitcoin kiosk.
“These people are just incredibly crafty, very slick, very convincing,” Klingel said. “It’s a sinking feeling. You feel victimized.”
As a defense against these scams, West Palm Beach police are encouraging residents to sign up for Operation Senior Shield, a free alert system that sends updates on the latest scams to help seniors recognize red flags and protect their personal information.
“It really focuses on making sure that there’s awareness surrounding these financial and fraud scams,” Leitao said.
Klingel said he plans to sign up for the program.
“Yes, absolutely. I would do that,” he said. “These criminals are ruthless.”
The investigation into the West Palm Beach victim’s case remains ongoing. Police said alerts from Operation Senior Shield will begin next month.
Tips from police on how to avoid becoming a victim:
- Verify the source. If you receive a suspicious text, email, or call, contact the company or agency directly using an official phone number or website—never use the number provided by the caller
- Government agencies do not call demanding money. The FTC, IRS, and law enforcement will never ask you to send money, provide gift cards, or use cryptocurrency
- Do not share personal information. Never send photos of IDs, bank details, or verification codes to unsolicited callers or text messages
- Talk to someone you trust. If something feels off, pause and speak with a family member, friend, or local law enforcement
- Never deposit money into bitcoin kiosks at the request of a financial institution or agency. Requests to transfer funds through bitcoin ATMs or unfamiliar apps are major red flags
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