Law enforcement officials, kupuna advocates and state lawmakers urged caution and vigilance Wednesday after Honolulu
police reported Oahu residents lost more than
$7 million in 222 fraud cases this year.
Representatives from the Hawaii Bankers Association, state Department of Law Enforcement, AARP, the Honolulu Police Department, the Office of Consumer Protection at Department of Commerce and Consumer Affairs, and crypto currency ATM company Coin Flip briefed state lawmakers about how “prevalent fraud is in the state and what steps are being taken to prevent such crimes.”
The informational briefing was convened by state House Committee on Consumer Protection and Commerce chair Rep. Scot Z. Matayoshi and Vice Chair Rep. Tina Nakada Grandinetti.
“Really the purpose of this is to address the fraud that we’ve seen in the community. It seems fraud scams are
increasing exponentially” said Matayoshi, at the outset of the briefing. “…mostly kupuna getting ripped off, sending money overseas, believing they are helping their…grandchild out of jail…or they won a lottery…it’s crushing. It’s become a real burden on our community. Just about everyone I’ve ever talked to knows somebody who has been scammed.”
Hawaii residents lost at least $55,180,901 last year to online crime, with kupuna age 60 and over losing more than $18 million, according to the Federal Bureau of Investigation’s 2024 Internet Crime
Report.
Law enforcement officials caution that number is likely significantly higher as a lot of fraud losses go unreported.
Hawaii generated 2,603 online fraud complaints last year tied to U.S. dollar losses. Cryptocurrency investors in Hawaii filed 709 complaints and lost crypto valued at $24,893,821.
Kupuna in Hawaii over the age of 60 filed 647 complaints last year and lost $18,851,052.
That is an increase from
453 complaints filed by Hawaii residents age 60 and over in 2023. The 453 complaints in 2023 represented $27,965,497 in losses for seniors.
The losses by Hawaii fraud victims last year represent a significant increase from 2021, when local people lost
$17.2 million to online crimes.
Honolulu police Lt. Ioane Keehu of the department’s Financial Crimes Detail told lawmakers Wednesday that the average age of the 222 victims who reported $7,668,743 in fraud losses this year is 51.
There is an increase in online scams targeting residents with “high impact on kupuna and young alike,” Keehu said Wednesday.
Prevention is more effective than prosecution because the majority of financial fraudsters are outside U.S. jurisdiction and very difficult to arrest. Hawaii residents are often targeted because of “isolation and trust culture,” according to police.
“A lot of what we are seeing is impersonation scams, people pretending to be law enforcement, pretending to be a government agent and directing people to play a lot of money. Gift cards, crypto currency or wire transfer, for any…reason. ‘Hey you missed jury duty,’” said Keehu.
Elderly with fixed incomes are among the most high value targets for scammers because a larger amount of money is exposed after accumulating.
HPD is also seeing college-aged individuals searching for rentals being scammed. Young people looking for housing fall prey to fake listings and scammers collecting deposits online.
Keehu said a rental scam case came in Wednesday morning before the briefing.
White collar professionals in Hawaii also are popular marks as they are targeted via investment scams as local families try to find financial investments, real estate or quick high return investments.
Some financial fraud purveyors execute schemes where they call or contact people and identify themselves as “HPD,” “Sheriff,” “IRS,” or “FBI.”
The callers threaten the mark that they will be arrested if immediate financial payments are not made.
Callers try to negotiate large lump sums, $5,000 to $10,000 and keep the fraud target on the phone until they agree on an amount and throughout the payment process.
Law enforcement or government agents will never ask for payments in the form crypto currency, gift cards, or wire transfers, Keehu said. HPD is also seeing cryptocurrency scams run through fake trading platforms and social media “gurus” that promise high guaranteed returns.
Police also detailed some of the tactics employed by fraudsters and urged the public to be aware for signs of scammers.
Callers will fake a sense
of urgency,” or “Account compromised.”
Fake law enforcement scammers sometimes say, “Don’t tell anyone or the case is ruined” and use fake badges, spoofed numbers, and scripted dialogue.
Professional scammers go so far as to create fake websites, AI-generated voices, and doctored IDs.
Keehu highlighted two types of fraud cases for lawmakers that they are seeing an increasing amount of.
The “Grandson in Jail” scam uses a caller who claims a grandchild has been arrested and needs $15,000 in bail money. Victims panic, send the money to an overseas account and the money is gone.
“Prevention would have stopped the loss,” according to HPD. Keehu told lawmakers he has kept scammers trying to take him on the phone for an hour, just to keep them too busy to scam others.
The other prevalent scheme HPD is seeing involves cryptocurrency and demands made by fake police officers. Targets are pressured into depositing $10,000 into cryptocurrency ATMs after calling with a spoofed HPD number.
Once the money is deposited and converted into crypto it is immediately split into multiple wallets.
Keehu urged residents to slow down any financial decision under pressure and verify the identity by calling back on official numbers.
Never pay with gift cards, crypto, or wire unless verified, and talk to a trusted family member or friend before sending money.
Keehu urged residents to report the scam early to HPD by calling 911 or walking into a police station and filing a report.
“We would like to see that 911 report…a patrol officer comes to your house or you come to the police station,” said Keehu. “Even though you may not get your money back, you may help us…stopping someone else from getting scammed.”
In January when state lawmakers convene, the AARP will push for cryptocurrency kiosk anti-fraud legislation to “expand consumer protections around the machines,” according to a statement.
The legislation will include a daily transaction limit, fraud warnings on the machines, clear details about fees, and receipts with transaction information.
The AARP wants Hawaii to join 18 states that have passed laws or issued regulations.
AARP Hawaii has argued that putting a limit of $2,000 per transaction and adding other consumer protections to cryptocurrency ATMs makes sense and will help “protect kupuna and consumers of all ages.”
“Kupuna, over their entire lifetime working have saved up resources. That’s what makes it tragic. When they lose their resources to a scam, they don’t have 10 to 20 years to make up that loss,” said Kealii Lopez, AARP Hawaii state director, speaking to lawmakers Wednesday. If it’s significant they are losing their homes. They are losing their retirement accounts. Scams really are an epidemic.”
The AARP operates a Fraud Watch Network with links to resources for prevention, reporting, and tips to protect their resources. Their helplines available at 877-908-3360, Monday through Friday, from 8 a.m. to 8 p.m. ET.
