Jerry and Mindy Dunaway were looking forward to spending their retirement traveling, golfing and being with their grandkids. They believed they had planned well for their financial future.
However, those plans now lay in tatters. The Atlanta-area couple fell victim to a cryptocurrency scam that cost them the US$800,000 they had set aside for retirement.
It started with an innocent-sounding WhatsApp message from a stranger about an investment opportunity. Jerry was encouraged to make small investments using a trading app.
At first, the returns were good, so Jerry started investing larger amounts. But when he tried to access his money, he found that he couldn’t.
“They show that you have money in, that you’ve made money,” he told WXIA 11Alive News. “This is a no-brainer. You invest more."
The couple eventually called 911 but were told that it was unlikely they would ever get their money back. Now, they are determined to move forward — and have made it their mission to warn others about the risks of investing in cryptocurrency.
Why is crypto so risky and who’s most vulnerable?
Speaking to 11Alive News, Emory University Goizueta Business School professor, Rajiv Garg, said cryptocurrencies are not covered by the same regulations and government oversight as cash. While that may have its advantages, it also comes with risks.
“The scams are very easy, because there’s no oversight,” Garg said. “You cannot go to a bank and say, ‘Look, my money is stolen. Can you give it back?’ Because the bank wasn’t even involved in those scenarios.”
He says scammers use artificial intelligence to help build trust, communicating with and answering questions from many potential investors at once. What’s more, cryptocurrency transactions typically aren’t reversible unless the recipient agrees to send it back.
According to the Canadian Anti-Fraud Centre Canadians lost $638 million to fraud in 2024 and over $94 million of that was lost in crypto payments alone.
Reports of crypto fraud were higher in those over the age of 60 as of 2021. Scammers groom older adults using a technique known as pig butchering. They can pretend to be the victim’s friend and then entice them with can’t-miss investment opportunities.
When older people are targeted in such schemes, the results can be devastating. Oftentimes the missing money was intended to fund a retirement plan, as was the case with the Dunaway’s.
“You swear to God you’re talking to a real person. It’s that sophisticated now,” said Jerry. “And that’s dangerous.”
How to spot red flags and protect yourself
According to the CAFC, there are steps you can take to protect yourself from cryptocurrency scams:
- Be wary of unsolicited messages on social media or "wrong number" texts, especially if the sender tries to develop a bond
- Avoid investing based solely on the advice of someone met online. Consult with registered financial professionals if needed
- Exercise caution if an online connection suggests investing in crypto or transferring funds to specific platforms
- Be skeptical of promises of large, quick, and low-risk returns
- Report suspected investment fraud to the CIRO, CAFC, and local police
Stay informed and exercise caution to avoid falling victim to investment frauds and romance scams. Visit the CAFC and CIRO websites regularly get more tips and information.
Remember, if a stranger contacts you randomly with a fantastic investment opportunity, ask yourself whether it seems too good to be true — if so, it likely is.
Sources
1. 11Alive: Georgia couple loses $800,000 from their retirement fund (June 12, 2025)
2. Canadian Anti-Fraud Centre: Fraud Prevention Month 2025
3. CBC: Canadians are losing millions in crypto to fraudsters. Here is how to spot red flags by Brtinei Bilhete (Dec 27, 2024)
4. Canadian Anti-Fraud Centre: Canadian Anti-Fraud Centre Annual Report 2022
5. Canadian Anti-Fraud Centre: Warning on crypto and romance frauds (May 28, 2024)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
