Retiree's Life Savings Wiped Out by AI-Powered Scam

A recent case highlights the growing threat of AI-powered cryptocurrency scams targeting older adults and retirees.

The scam began with a WhatsApp message advertising a cryptocurrency investment course, which led to a relationship being built with a person claiming to be a single mother. The scammers guided the victim through setting up cryptocurrency wallets and making initial transfers, using tactics such as offering reassurances and emotional familiarity to build trust.

The victim, 73 years old, lost nearly $300,000 over two months to 14 different cryptocurrency wallets controlled by the operation. When the expected returns stopped appearing, the scammers pivoted to claiming that the funds had been sent to the wrong wallet address.

IRS investigators have tracked the funds flowing out of the wallets into a consolidated pool, where they were converted and withdrawn. The same network has processed over $5 million in stolen funds across multiple victims.