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Scammed, then scammed again: Lehigh County man loses life savings in wire transfer schemes

Pennsylvania man loses life savings in in back-to-back wire transfer scams
Pennsylvania man loses life savings in in back-to-back wire transfer scams 04:51

Scammers, in two separate instances, convinced Ed Hayduk to wire transfer more than $70,000. Now, as he struggles to pay his bills, a Pennsylvania lawmaker is looking to enact protections to try to stop this kind of fraud in its tracks.

Hayduk, who lives in Lehigh County, says it all started with a simple text message that snowballed into a scheme that cost him his life savings.

That initial text appeared to be meant for someone else, Hayduk recalled. But it was a scammer. Con artists are increasingly using this tactic as a conversation starter to lure victims, according to the Federal Trade Commission.

Hayduk said he continued to communicate with the scammer for more than a week — sharing details of his health and hobbies — before he was asked if he wanted to invest in cryptocurrency.

"It was all just friendly, and it seemed real," he said. "It seemed like, well all right, I don't have my money invested in anything to earn real money so let's give it a try."

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The amount he was asked to wire transfer into a crypto wallet was initially small — $1,000 at first, then $2,000.

But the requests quickly increased to tens of thousands of dollars, he said, until he'd transferred $50,000 in total.

Hayduk showed CBS News Philadelphia statements the scammers sent him that appeared to show his investment growing. In one screenshot, Hayduk's account balance surpassed $100,000.

Then the money — and the person he'd been communicating with — disappeared.

Wire transfer fraud increasingly common and costly

The FBI says this type of fraud is one of the most prevalent and damaging schemes today. Americans are losing billions each year by being tricked into making fraudulent wire transfers.

Wiring money, the FTC warns, is like sending cash. It's nearly impossible to get back or trace who took it, which is why wire transfer schemes have grown increasingly common and costly.

Scammers use a variety of methods to initially lure and contact victims, according to the agency, including social media, dating sites and texting. The promise of easy money, the agency warns, is one of the biggest red flags you're likely being scammed.

"I can't even describe it, you're alone," Hayduk said.

That loneliness drove Hayduk to join a dating site a short time later. But his match turned out to be a romance scammer with an elaborate story of how she needed help getting back to the States.

The two communicated regularly for months texting, emailing, sharing pictures and even speaking on the phone. The woman claimed the money was to insure a payout she was owed from her employer. In all, Hayduk wire transferred another $20,000.

Hayduk has now compiled correspondence from both scams into several binders. They cover his dining table as he tries to piece together the schemes that robbed him of everything.

"I feel stupid," he said. "That's how you feel."

Push to add protections

Pennsylvania law enforcement and legislative leaders say when people like Hayduk go to their financial institution requesting to move unusually large amounts of money, employees should be able to do more to spot and stop it from happening.

"Billions of dollars are being stolen every single year here in Pennsylvania and almost none of it comes back," Bucks County Republican Rep. Joe Hogan recently told CBS News Philadelphia. "We have to find out ways to protect more people."

Hogan plans to introduce a bill to give bank employees more authority to flag suspicious activity, freeze a transfer for a few days, and alert law enforcement.

Bucks County Rep. Joe Hogan
Bucks County Rep. Joe Hogan CBS Philadelphia

"They see the example of someone coming in that they know is a victim of this type of scam and they can't do anything about it," he said.

For Hayduk, not doing anything about it is not an option.

"I'm going to provide you or whoever else I can with as much information," Hayduk said. "If one piece of it allows somebody to be caught or … one person not to get scammed because of it, I justify all the work and time and effort."

Nationally, lawmakers in Congress are also working to close loopholes they say exempt wire transfers from protected bank transactions. They argue banks should be required to reimburse scam victims.

Bank executives last year testified they believe working with law enforcement to get ahead of scams before consumers send money is a better solution.

What to know before you wire money

Never wire money to anyone you haven't met in person, according to the FTC, no matter the reason they give.

There are some common ways scammers try to convince people to wire money. In some cases, scammers will lure in victims with fake ads for an apartment or vacation rental with surprisingly low rent.

Sometimes, scammers send unsolicited checks to victims to deposit and wire back to them. But the check is fake and when the bank figures it out, you're left on the hook to repay it.

The FTC says scammers are also known to use fake family emergency, prize, utility and romance scams to get you to wire money.

If anyone demands that you wire money, report it to the FTC at ReportFraud.ftc.gov.

Do you have a money question, a consumer issue, or a scam story you want to share? Email InYourCorner@cbs.com

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