Washingtonians defrauded over $7 million by scammers posing as federal agencies

Local prosecutors are urging caution after 47 Washingtonians collectively lost over $7 million to scammers pretending to be trusted federal agencies.

In the worst case statewide, one victim lost around $870,000, according to the King County Prosecuting Attorney's Office. In King County, where at least 21 people have fallen victim to the scam, someone lost nearly $315,000.

In an interview Tuesday, Patrick Hinds, chief deputy of the county's Economic Crimes and Wage Theft Division, said the state first received reports of such scams in February 2024, and more have emerged over the last few weeks.

It typically starts with an email, text, phone call, or even a pop-up on their computer screen with a phone number or link to click on.

The scammer then pretends to be a trusted or respected agency — like the Social Security Administration, the FBI, or the Federal Deposit Insurance Corporation — and claims the victim's identity has been stolen or an account has been compromised, and they're reaching out to help them "safeguard" their funds.

Typically, Hinds said, a second scammer pretending to be from a different trusted agency reaches out afterward, and "they work together to convince the victim." They then convince the victim to withdraw cash from their accounts and put it in a box that will be picked up by a courier who will then take it to the FBI or FDIC "for safekeeping," Hinds said.

"That's the story that's told," he said. "Of course, all of that is untrue. What really happens is the courier comes, picks up the box, and as soon as that box of money leaves the victim's hands, it's effectively gone."

In many cases, Hinds said, the scammers will reach out to the same victim several times, confirming receipt of the funds to "continue to prey on the victim" and "further enhance the scheme" so they can continue to reach out for more money.

"The scam will sort of continue building on itself as the scammers continue to work on these victims to try to extract as much money as possible," Hinds said.

He added that the scam is not unique to Washington and he expects more victims will continue to come forward.

"It's a significant issue that's happening. Our detectives with local law enforcement are investigating these cases; prosecutors are prosecuting them," Hinds said. "But the practical reality is that once someone falls victim to this scam, these are very hard cases to investigate and hard cases to prove in court."

That's because most of the scammers' communication with victims occurs electronically, using a phone number that's usually a burner phone or an out-of-state or country number that is difficult to trace back, Hinds explained.

The scammers also hire the couriers over the internet, through gig worker sites, and they often "have no idea what it is they've been hired to do."

While some victims who received calls from scammers recognized it was a scam and didn't lose anything, Hinds said they've heard reports of people losing anywhere from $10,000 to nearly $1 million. Most victims have been older adults.

Hinds urged people to practice good online safety and security by doing things like having anti-virus and anti-malware software installed — and up to date — on all computers. He also advised against clicking on links sent by people or agencies you don't recognize or didn't expect to hear from, and to "think about whether the story you're being told makes sense."

"If the FBI is trying to contact you to let you know that you've been the victim of a crime, a sort of oddly worded text message is probably not the method they're going to use," Hinds said.

Other red flags, Hinds said, include communication that creates a sense of fear and urgency, or pressure to keep the communication a secret.

If you believe you've been the victim of this scam, Hinds urged people to reach out to local law enforcement as soon as possible, the financial institution where money has been lost, the Federal Trade Commission, and the IC3, which is part of the FBI and tracks scams and frauds.