A RETIRED man said he lost $740,000 after being unable to access one of his accounts.
Barry Heitin, 76, explained that he went down a “rabbit hole” after a call he thought he made to a fraud prevention department.
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Heitin explained how he was caught up in an elaborate scheme that convinced him his money was not safe in his bank accounts and retirement funds, according to The New York Times.
The retired lawyer said he was unable to log into his 401(k) retirement account in September.
He explained that a few days later the website screen advised him to call the fraud department using the number provided on the website.
Heitin said his fraudulent ordeal began with this phone call, as the criminals on the other end pretended to be federal agents trying to save him money.
The first scammer introduced himself as fraud investigator Charles Hunt and claimed that people were trying to access Heitin’s accounts.
A second fraudster, who introduced himself as Hayden Smith, said he worked at the bank where Heitin had a checking account
Smith said two $10,000 transactions were made using his funds to purchase apparently indecent images through a Chinese website.
Heitin said these people convinced him he could be part of an investigation with the government into the matter.
A third scammer, who said his name was Finn Whitrock of the Internal Revenue Service, said Heitin could protect his funds by transferring them to an apparent federal locker.
“They kept telling me, ‘This is a big case and we’re going to arrest a whole group of people,’” Heitin said.
“It was like a rabbit hole.
“I was going down the hole with them.”
Heitin spent most of his days transferring funds from his bank accounts and retirement fund to these criminals.
“I then gave them access to my computer and they began a series of withdrawals from my bank accounts,” he said.
Phone scam statistics
Americans are bombarded with three billion spam calls per month. What are the numbers regarding the number of victims and the amount of money lost to fraudsters
- In 2022, Americans lost an estimated $39.5 billion to phone fraud, with 68.4 million US citizens affected, according to TechReport.
- The average phone scam victim lost $567.41 each in 2021, a huge increase from the figure of $182 per victim in 2021, according to Hiya.
- Most scams happen over the phone, with fraudsters twice as likely to call compared to text in 2021, as the Federal Trade Commission (FTC) reports.
- In 2021, the US saw a 56% increase in spam phone calls, with 60% of those robocalls.
- US residents receive an average of 18 spam phone calls per month, although some experts believe the real number could be as high as 31 per month.
- Many phone calls from reputable companies can be mistakenly marked as spam, but 38% of companies have no idea whether they are being marked as “potential fraud” or not, according to Hiya.
- Never provide personal or financial information if you suspect a phone call is a scam. For example, your bank will never ask for these full details over the phone.
- To reduce spam calls and scams, sign up for the Do Not Call Registry. Telemarketers, by law, will need to check this list before calling you.
- Downloading third-party apps like Hiya, Nomorobo or Truecaller can help filter annoying spam calls.
- Try not to share your phone number unless necessary, especially online or with sketchy sources.
Heitin added that the scammers told him to ignore any warning signs and not tell his three adult children what he was doing.
He was stopped by his retirement advisor when he tried to withdraw from his IRA, but Heitin said the fraudsters had several excuses ready, such as he wanted to buy a surprise property for his children in Canada.
When that didn’t work, Heitin moved his money into another IRA, which ran out in two weeks.
His lawyer, Robert Rabinowitz, criticized this new financial provider for allowing funds to be drained in this way.
“This type of activity is a classic sign of potential money laundering activity and should have raised red flags,” Rabinowitz said.
It was like a rabbit hole. I was going down the hole with them.”
Barry Heitin
GOLD DIGGERS
The ordeal didn’t end there, as Heitin said these scammers told him to send money to a gold dealer in New York to buy goods, he told The New York Times.
He recalled the dealer saying he was “concerned” as he had dealt with another customer who was scammed in a similar way, but Heitin continued to buy about $416,000 worth of gold.
Heitin added that a car drove up to his apartment and he placed the gold in a brown paper bag in the back seat of the vehicle.
The scam ended in November when he was called by a New Jersey detective who said she found his details on a gold receipt in a car.
After contacting two FBI agents, he was informed that he was one of seven victims of an elaborate scam based in India.
“I almost felt a disappointment or a sense of relief,” he said when he realized he had been tricked.
“I felt good and bad at the same time. It’s hard to explain.”
TAX DRAMAS
His ordeal didn’t end there, as Heitin added that he owes nearly $285,000 in taxes.
Withdrawals in traditional IRAs are always taxed, and their rates have increased with mass cash withdrawals.
This story originally appeared on The-sun.com read the full story
