Police say the scammers call victims while posing as bank employees, using technology to spoof their caller ID so the call appears to come directly from a victim's bank. They then trick the bank customers into revealing their account login information.
In some instances, scammers have also told victims that something is wrong with their debit and credit cards, such as a malfunctioning microchip. Victims are then instructed to put all of their cards into their home mailboxes for a bank employee to retrieve so that the bank can issue them new cards — but instead, the scammers go to the victims' homes and steal the cards.
Reports of these scams have emerged in Denver, Boulder and Douglas County, according to police and sheriff departments, but no arrests have been made.
More than $100,000 was stolen from five victims in Boulder using this scheme, police say. In Douglas County, over $84,000 was taken from five credit union accounts, according to the local sheriff's office. Denver police say one report of a similar scam occurred in mid-February, but they're still investigating how much money was lost.
"The details are very similar, but at this point, we are not sure if it is the same suspect," says Cocha Heyden, public information officer with the Douglas County Sheriff's Office. "We are investigating that."
Scams Increasing in Colorado
Scams have been on the rise in Colorado for years. In 2023, Coloradans lost $164.2 million to scammers — nearly double the $84.4 million lost in 2021 and nearly quadruple the $44.6 million lost in 2019, according to the Federal Trade Commission. Colorado had the fifteenth-highest number of fraud reports in the country per 100,000 residents last year, based on the FTC data. Imposter scams like the bank-employee con are the most common type of fraud in Colorado and nationwide. Just under 14,000 imposter scams were reported in Colorado in 2023, accounting for more than one in three fraud reports.
"There are more tools now to engage in scamming than there have ever been before," says Colorado Attorney General Phil Weiser, whose office saw a more than 50 percent increase in imposter scam complaints between 2022 and 2023.
"A generation or two ago, we didn't have scam texting, we didn't have social media, we didn't have spoofing phone numbers, we didn't have artificial intelligence," Weiser adds. "The scammers have more tools now than ever before, and they're getting better and better at using them."
The technology allowing scammers to spoof phone numbers has been instrumental in pulling off this recent wave of thefts in Colorado.
The Douglas County incidents targeted Red Rocks Federal Credit Union customers, Heyden says. The accounts of seven customers were hacked at the end of February, and four of them had their money transferred to one account: that of a man who gave the scammers his bank login information and left his credit cards in the mailbox for them to retrieve. The scammer then stole the accumulated $84,000 from the man's account.
The credit union reimbursed the victims.
The Boulder-based scams involved several different banks and credit unions, and targeted victims of various ages, police say. The Boulder suspects were caught on surveillance video while taking debit and credit cards from victims' mailboxes, using numerous vehicles, including rental cars.
Since releasing photos of the alleged suspects on March 15, Boulder police say they've received tips about who the scammers could be, but no arrests have been made as of Wednesday, March 20.
"We're following up on everything right now," says Dionne Waugh, Boulder police public information officer. "They still want to track some things down and see how they shake out."
Denver police declined to provide details about its reported incident, but said it "appears to be similar to complaints in Boulder."
What to Do if You've Been Scammed
Police are asking anyone victimized by these scams or who has information about the suspects to contact their local law enforcement agency. Denver police are offering a $2,000 reward for information that leads to an arrest by calling Metro Denver Crime Stoppers at 720-913-7867. In the meantime, police urge Coloradans not to put their debit cards, credit cards or any identifiable information in their mailbox. Anyone who receives a suspicious phone call from someone claiming to be with their bank is encouraged to hang up and call the bank directly, using the phone number on their cards, or visit the bank in person.
"Part of what we need to do is catch up," Weiser says. "We've got to educate people before the fact, we've got to build better technology to protect people, and we've got to go after those scammers out there to hold them accountable."
Weiser says victims of scams or attempted scams should report their experience to local law enforcement and the Colorado Attorney General's Office at stopfraudcolorado.gov.
There, residents can also educate themselves on common scams. For example, calls from fake law enforcement officers claiming there's a warrant for your arrest because you missed jury duty, so you need to pay a fine to avoid jail. Or using technology to mimic a loved one's voice, claiming they're in danger and need money.
"This is a problem that's going to touch all of us," Weiser warns. "All of us need to build up our defenses."
