Denver ice cream shop falls victim to "incredibly intimidating" scammer pretending to be police

A Denver ice cream shop is warning other small businesses after a scammer pretending to be a police officer convinced an employee to send over all the cash in the register.

Lauren Kennington, a regional manager at Sweet Action, says the caller exploited young employees by using threats of arrest.

"When I finally heard what had happened, there was panic," Kennington said. "There was a 'cop' on the phone telling these young high school and college students they were in trouble if they didn't comply."

The caller claimed to be a police officer investigating counterfeit deposits. He provided a bogus badge number and case number and ordered the employee to move to a secluded area, count all the cash on hand, and stay on the line.

Sweet Action has recently had problems with counterfeit bills, making the call seem believable.

The call came during a shift change, a moment Kennington says scammers exploit.

"Mentally, employees are in transition -- partly at work, partly at home," she explained. "Context gets lost, assumptions are made, and critical thinking takes a back seat."

Kennington says the caller was aggressive, talking over employees and creating a sense of urgency.

"He convinced them they were doing something wrong," she said. "That they could be arrested."

The caller had the employee transfer the call to a personal phone and instructed them not to contact management, claiming he was already in touch with Kennington. He then directed the employee to empty the register and go to CVS to buy MoneyPak cards -- a form of wire transfer that is difficult to trace and impossible to refund. By the time Kennington was alerted, it was too late.

The business lost about $600.

Days later, the same scammer tried again at another company location. This time, staff recognized the warning signs and kept him on the line until Kennington arrived.

She recorded the call.

"He was incredibly intimidating," she said. "He talked over me, used police jargon, threatened arrest. Even knowing it was a scam, my heart was pounding."

When Kennington challenged him directly, he hung up.

"It still rattled me," she said. "I can't imagine how terrifying that would be for someone younger or less experienced."

Kennington says the emotional impact on her staff weighed on her, especially knowing the employee feared losing their job.

"I didn't let them go," she said. "They weren't trying to do anything wrong. They thought they were doing the right thing in the moment."

Kennington reported the incident to Denver police.

"These cases are hard to track, especially when scammers operate outside local jurisdiction," she said.

Colorado Attorney General Phil Weiser says scams targeting businesses are becoming more common and more sophisticated.

"If you're not terrified by what changing technologies, including AI, is going to do with future scams, you're not paying attention," Weiser said.

He says scammers could face several potential charges. The challenge is tracking them down.

"Businesses are consumers, too," Weiser said. "They have a right to be treated fairly and not be subjected to unconscionable tactics."

His office encourages anyone affected by fraud, individuals or businesses, to report it at StopFraudColorado.gov, saying that reports help investigators identify patterns and emerging threats.

The Denver Police Department says it will never call a business and demand financial information.

Kennington hopes another business doesn't fall victim.

"One of the things I love about Denver is that we take care of each other," she said. "If me speaking up means one less business or employee falls victim, that's enough."