TROY, Mich. (WXYZ) — The Troy Police Department is raising awareness about cryptocurrency scams that are costing local residents thousands of dollars.
Officers are now posting warning signs at cryptocurrency kiosks throughout the city to prevent more people from falling victim to these increasingly common schemes.
"Our goal is to just stop anybody falling victim to these scams," Lt. Ben Hancock of the Troy Police Department said.
On Tuesday, Hancock and Detective Carlo Pizzorni visited businesses around Troy to place warning fliers near cryptocurrency machines where victims have been tricked into depositing large sums of money.
The scams follow a consistent pattern, according to police. Victims receive unsolicited communications, claiming they owe money to the government or need to pay a fine.
"People are getting contacted in many different ways, whether that be a text message or an email or a phone call, and then they're being told that they owe money for bond or owe money to the government for a fine, and then they're being instructed to show up to any of the cryptocurrency machines," Hancock said.
These incidents are occurring frequently in Troy — approximately two to three cases per week — with victims often losing substantial amounts of money.
"So everything they worked hard for throughout their lives. It's their investment funds, their life savings, it's all gone," Pizzorni said.
Victims are being instructed to withdraw money from their bank accounts and deposit it into cryptocurrency machines to purchase Bitcoin or other digital currencies. While victims believe they're paying a government fine or bill, they're actually sending money directly to scammers.
VIDEO: Watch our previous report when police in Waterford installed large signs near cryptocurrency ATMs after a rise in scams
"Once they've deposited the money, within seconds, it has gone to an exchange, and it bounces around so much that we can't trace it anymore," Pizzorni said.
According to police, one recent victim was told they owed $12,500 and never recovered the funds after making the payment.
Local businesses with cryptocurrency kiosks have also witnessed the problem firsthand.
Ghazwan Abdal, owner of Troy Original Buscemi's, said he's seen seven or eight customers fall victim to these scams at his store.
Abdal welcomes the police department's new warning signs, which read:
"STOP. Is someone pressuring you to make this deposit immediately? Are you on the phone with someone right now who is telling you what to do? Were you told to lie to anyone about the reason for sending money. If yes, you are being scammed."
"You know, I'm feeling better and more comfortable because that's going to help people not get scammed about those kinds of things," Abdal said.
Troy police encourage residents to contact them immediately if they suspect they're being targeted by a scam.
"We'll send an officer out to you to make sure that what you're doing is legitimate or we can help you over the phone if that's what you prefer," Hancock said.
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