Trapped by Fear: The Scam that Cost $300,000

THE SCAM: Contrary to the common belief that fraud schemes are quick scams leading to minor losses, one woman was deceived into thinking she was a prime suspect in a money laundering operation for three long months. Fearing imprisonment or deportation, she became entangled in the deception and lost $300,000 before discovering it was a scam.

THE SCHEME: It all started on a Friday afternoon in March 2024, when data analyst Wannapa Suprasert was at her job in San Francisco. The 28-year-old, originally from Thailand, received a call from the Thai Embassy in Washington, D.C.

Suprasert was informed that a passport with her name had been smuggled into Bangkok airport and was questioned as to whether she had lost or sold it. Suprasert insisted that she still had her passport in her possession, so the person transferred her to the Thai police to file a report. The connection kept dropping, and eventually, the person posing as a police officer requested they continue the exchange over a messaging app, Line, which is often used in Asian countries. The victim didn’t think anything of it as she had just been in Thailand a month prior and used the Line messaging app to engage with the Thai Consulate. The scammer who claimed to be an officer for the Central Investigation Bureau sent the victim a copy of the police report that was filed. Then, he explained that her identification number, along with that of 239 other suspects, was linked to an international money-laundering scheme.

The scammer then detailed information about the money-laundering scheme and criminals they claimed with whom she was involved. Suprasert was even interrogated over a video call because she was now considered a suspect. The “officer” eventually stated that after their conversations, he believed she was a victim, not a suspect, and he would help her clear her name. However, she was directed to send updates throughout the day regarding her whereabouts so they could be assured she was not attempting to flee during the investigation. Suprasert was required to send pictures of herself, her location, and a description of her activities four times a day. The scammer threatened that failure to comply would result in agents assigned to physically follow and monitor her, and any attempt to escape or failure to report would lead to her family facing jail time and a freeze on their assets. She was also told not to inform anyone as it could interfere with the investigation, which allegedly involved the FBI, and warned that doing so could result in jail time and fines. Although she had some doubts, Suprasert complied with the scammers’ requests due to her fear of losing everything she had worked hard to achieve. She even received a message over Line warning of criminals impersonating Thai officials, but the scammers shot down her concerns, claiming that it was criminals trying to interfere in their ongoing investigation.

Eleven days into the scam, the fraudsters accused Suprasert of selling her bank account to the involved crime syndicate and claimed they needed to investigate the money in her account to exonerate her. Believing the scammers, she wired $81,000 to a Hong Kong bank account, leaving only a small amount for daily expenses. The scammers, posing as police officers, later claimed that the money had cleared but required court examination. They suggested she travel to Thailand to appear in court. While she was encouraged to appear in person to advocate for herself, the officers sternly warned that another victim who was in the same situation was targeted and murdered before he ever arrived at court to clear his name. The officer then offered another suggestion: an official in Thailand could go to court on her behalf, but it would require money as collateral. Suprasert, fearful of her safety and her family’s, decided to keep everything a secret and requested that the “officer” represent her.

Since Suprasert had already sent the entirety of her savings, she lied to her family and requested financial help from them to get her Ph.D. She told them that to improve her chance of being accepted to the Ph.D program, she needed to prove it could be paid for and that the money needed to be in her account. Her family, who was deeply invested in the education of their daughter, sent $150,000 without question. The money was mainly sourced from her aunt’s retirement fund. She then initiated a wire transaction for $100,000 to the “police” and then attempted a second for $50,000. After the first transaction, a fraud department representative from Bank of America called Suprasert inquiring about the transaction. She lied, telling them it was a mistake – her father meant to send it to another relative, so she immediately transferred it to the right person. Suprasert had already initiated the second transaction in the amount of $50,000, but Bank of America called her, citing red flags, and asked her to come to a branch where she learned that the 2nd transaction had actually been canceled. The Bank of America representative warned Suprasert of pig butchering scams, romance scams, and red flags associated with these requests, but she assured them that was not the case. She honestly didn’t believe this was a scam, and the description of those other scams didn’t fit her situation. Instead, she acted aggravated that they canceled the transaction, claiming her cousin needed money for brain surgery. The bank accepted the transaction, and Suprasert left the branch, relieved that she had again protected her family from possible incarceration or other legal consequences

Nearly two months into the scam, the fraudsters doubled down on the threats to her safety and her family’s and then introduced a new problem for Surpraset. Now, the criminals posing as officers claimed that people who were victims of this international money-laundering scheme were seeking compensation from her because her name was identified as one of the criminals involved. The scammers encouraged Suprasert to spend another $60,000 to cover legal fees and compensation for victims to show good faith, which she got by lying to her family again. This scam was spiraling out of control; she just wanted to all be over and have her name cleared, so she sent the money. The final blow was when the fake officers claimed Suprasert needed to send proof she wasn’t hiding assets on her credit cards and to send over $10,000 in cash advances from those cards as well as any money she had made in the last few months. Suprasert sent a final amount of $20,000 and was told to schedule a flight to come to Thailand for a final court appearance, which would ultimately exonerate her. It wasn’t until she then, when she tried to call the scammers back to verify flight and travel plans, that she realized she had been scammed. There was no answer to her calls – it was over, and she had lost $300,000 – not just her own money but her family’s. Suprasert then went to the FBI and contacted the Central Intelligence Bureau and other Thai authorities, who all confirmed that she had been a victim of an elaborate fraud scheme.

FRAUD SQUAD EXPLAINS

In this case, the victim was ensnared in a complex scam that can be categorized as a “Fake Legal Threat” scam. These scams often involve fraudsters posing as law enforcement or government officials to intimidate and manipulate victims into transferring large sums of money. The scam typically unfolds over an extended period, using psychological pressure and threats to maintain control over the victim.

Several red flags indicate the potential for fraud in this scenario:

• Immediate response requirement: Scammers often create a sense of urgency, pressuring the victim to act quickly without verifying the situation.
• Requests for secrecy: The fraudster’s insistence on not sharing information with others is a tactic to isolate the victim and prevent them from seeking advice or help.
• Unusual communication methods: Legitimate law enforcement or government officials typically do not use messaging apps for official communication. This should raise suspicion, even though the victim claimed to have communicated with Thai officials previously on the app. In this case, the original call was unsolicited, so an immediate suggestion to move to a messaging app is a big red flag.
• Threats and intimidation: Using threats of legal action, imprisonment, or harm to family members is a common tactic to coerce compliance.
• Requests for large sums of money: Any demand for substantial financial transfers, especially to foreign accounts, is a significant warning sign.

FRAUD SQUAD’S ADVICE

To avoid falling victim to similar scams, individuals should take the following preventive measures:

• Verify the source: Always verify the identity of the caller or sender by contacting the organization directly using official contact information.
• Take your time: Do not rush into action. Take a step back, evaluate the situation, and verify the facts before proceeding.
• Consult trusted sources: Speak with family members, friends, or legal advisors if you receive a suspicious request or communication.
• Limit sharing of personal information: Do not share personal or financial information with unknown or unverified sources, especially over the phone or via email.
• Use updated security measures: Keep your software and devices updated with the latest security patches and use anti-virus and anti-malware software.
• Be wary of requests to stay quiet: If someone asks you to keep information secret, particularly from law enforcement or family, consider it a red flag.

Think you’ve been targeted by a scammer? Take the following steps:

• End communication: Stop all communication with the scammer immediately.
• Document everything: Keep records of all communications, including emails, messages, and call logs.
• Contact authorities: Report the scam to local law enforcement and relevant authorities such as the Federal Trade Commission (FTC) or equivalent in your country.
• Notify your bank: Inform your bank or financial institution about the scam to potentially recover lost funds and protect your accounts.
• Seek legal advice: Consult with a legal professional to understand your rights and potential actions you can take.

By staying vigilant and informed, you can protect yourself from falling victim to sophisticated fraud schemes like the one described. If in doubt, always seek verification and consult with trusted individuals or authorities before taking any action.

ADVICE FOR FINANCIAL INSTITUTIONS

Financial institutions can put the following into practice to help protect their customers from falling victim to fraud:

• Train employees to recognize and report potential fraud.
  • Empower employees to understand, recognize and call out red flags and suspicious activity.
  • Educate employees on the most current tactics.
  • Train employees on what questions to ask in the event they encounter a suspicious individual or possible signs of fraud through coercion.
  • Establish a process for employees to request support to handle possible fraud.
• Educate customers on common fraud schemes, including bank spoofs [texts, emails, and calls], and how to avoid them.
• Consider a security awareness campaign with emails and banners reminding customers of red flags for fraud.
• Monitor customer accounts for unusual activity, such as large or frequent wire transfers, and contact the customer to verify the transactions.
• Use fraud detection software to identify suspicious patterns and behavior.
• Partner with law enforcement agencies to share information and coordinate efforts to combat fraud.
• Conduct regular audits of security protocols and procedures to ensure they are up-to-date and effective.
• Implement strict verification procedures for wire transfers and other high-risk transactions.
• Use encryption and other security measures to protect customer data from unauthorized access.
• Stay up-to-date on the latest fraud trends and tactics and adjust security protocols accordingly.

The DefenseStorm Difference:

DefenseStorm approaches fraud differently by looking at both monetary and non-monetary transactions to catch fraud before funds leave the bank. Our Fraud Detection product identifies unusual patterns, such as exceptionally large withdrawals within a short period of time not consistent with normal activity. Our ability to monitor, detect, and alert on suspicious activity across all departments – including Originations, Online and Mobile banking, and Internal Fraud – allows the FI to stop fraudsters before funds leave the account.

DefenseStorm is your ally in the fight against cybercrime. Want to learn more about how Fraud Detection can help your FI stop fraud before money ever leaves accounts?

SOURCES:

“I was Scammed out of $300,000!”

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