Social Security Scam Costs Woman $500,000

A Social Security scam stole $500,000 from one victim in Ohio.

Lori English, who lives in Licking County, lost a half million dollars after she received a phone call from a scammer who misled her into thinking she needed to pay up or risk jail time.

English had recently entered retirement after 40 years in the workforce but now says she will have to find a new job.

"All my dreams are gone. Everything is gone," English told NBC 4.

The scammer who called English one day in March 2023 showed up as the Social Security Administration on caller ID. English said she was also seemingly transferred between federal agencies all confirming the information: her Social Security number had been linked to drug trafficking and money laundering.

"They were so slick, the guy I talked to everyday had an answer for everything and he was smooth, I had no question he was who he said he was. He didn't hesitate on any of his answers, he knew what he was doing," English said.

Under the impression that someone was using her identity and committing these crimes, English was in a panic and rushed to provide information to clear her name.

That included providing her retirement and investment information to buy gold for the scammers. They also instructed her not to talk to anyone else about the situation.

"He's got me so sucked in and so scared I'm going to go to prison and just the things he kept telling me to enforce that but yet it's ok Lori, we got you," she said. "I've had people say to me that's not going to happen, people aren't going to do that legitimately, and I say until you're in my shoes you can't judge."

The scam went as far as to have two people enter English's home and take the gold directly from her hands, the local station reported. This is where English's fraud case and typical Social Security ruses differ.

"I do not know of another case where scammers actually come into your residence in your living room and take possession of your property," Det. Sgt. Justin Woodyard from the Licking County Sheriff's Office said. "This case is very unique because I don't think I've ever heard of such a thing."

To this day, two of English's scammers have never been located or held accountable. Another two, Justin T. Cao and Tuan Hung Van, were arrested in Oklahoma and sentenced to two years in prison as part of a larger organized crime network.

"I don't want other people to have to go through this. It was a long process, a long scary process," English said. "And they got everything from me. And I want to educate people, teach them how these operations work and what happens and what to do if you do get into my situation."

Steve Weisman, a white-collar crime lawyer and professor at Bentley University, said imposter scams are one of the number one fraud categories and happen frequently when fraudsters pose as companies or government agencies.

Typically, victims are told they need to send a wired payment, gift card or credit card information immediately.

"For many, these benefits are a significant portion of their overall retirement income," Dan Barta, a principal enterprise fraud and financial crimes consultant at SAS, told Newsweek. "To lose them or have them delayed can have a significant impact on their living situation. The sense of urgency diverts the victim's attention from thinking through the situation before acting to acting."

There are some early signs that you might be getting played by a scammer, though.

"Being asked to pay by a gift card is a definite indication that the call is a scam since no governmental agency requests or accepts payments by gift cards," Weisman told Newsweek. "Alternatively, the scammer demands the victim supply the phony governmental agent with personal information such as your Social Security number which will then lead to identity theft."

One of the most troubling parts about the scams is that caller ID can convince you that the person is from a legitimate agency.

"Through a simple technique called 'spoofing' a scammer can manipulate your caller ID to make his call appear to come from whomever and whatever number he wants," Weisman said.

"The truth is that neither the IRS, Social Security Administration nor any federal agency will initiate communication with you by a phone call and they will never threaten you with arrest for non-payment of a claim. Neither does any government agency accept gift card or cryptocurrency payments, but many people are unaware of this."

Seniors are routinely targeted in these types of tactics because they tend to have a lifetime of accumulated savings that provides a "tempting target" for scammers, Weisman said.

"These scams can be financially and emotionally devastating for seniors," Weisman said, adding that there's a psychological component in the manipulation as well.

"It is also important to recognize that these scams, like so many, appeal to what is called the lizard brain, which is actually the amygdala. This part of the brain responds to emergencies prompted by fear and urgency and does not use rational thought to make a decision. Scammers use fear and faked emergencies to get people to act without rationally thinking. It is tough to overcome, but easier if you are aware of it."