In February 2024, Burlington resident Mark, 54, accepted a Facebook friend request from an impersonator claiming to be NASCAR driver Denny Hamlin.
Over several weeks, the impersonator claimed that a “briefcase full of prize money” was stuck in customs and that his documentation for entering the United States had expired.
Trusting his new “friend,” Mark bought six $500 gift cards. When that didn’t free the briefcase, the scammer urged him to tap his savings.
Mark withdrew from his IBM 401(k) and took additional loans against a second 401(k) with GlobalFoundries. He sent funds by cashier’s check.
By the time doubts crept in, he had lost more than $100,000 in savings. It was only later that Mark realized he’d been duped.
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From devastation to a rebuilding roadmap
Once he recognized the scam, Mark contacted the U.S. Secret Service, filed a complaint with the FBI and alerted multiple state and local agencies. Despite his efforts and the help of an attorney, law enforcement determined the funds were irretrievable.
“The chances of getting that money back are very, very, very slim.” John Deloney lamented.
Today, Mark’s 401(k) balance is $146,321 — down from an estimated $200,000 before the fraud. Earning $60,000 annually, he maintains a lean budget: $1,000 monthly rent (including utilities), $60 for phone service, $50 for internet and no credit-card debt and $22,000 in 401(k) loans.
“Somebody weaponized what I think is the most sacred thing, and that’s a relationship. And inside that relationship somebody asked you for help, and you’re the kind of guy that helps. And that hurts, man.”
Hosts George Kamel and John Delony laid out a disciplined recovery plan:
Build an emergency fund of three to six months’ expenses: Set aside a portion of each paycheck into a separate savings account until you’ve covered three to six months of living expenses to serve as a financial buffer against unexpected setbacks.
Eliminate loans: Mark can make small lifestyle sacrifices and redirect extra cash toward paying off his $22,000 in 401(k) loans more quickly. Deloney advised him to treat it as a “sweat tax” that would remind him to avoid risky online relationships in the future.
Invest 15 percent of your income back into retirement: Kamel advised Mark to contribute 15 percent of his $60,000 salary to his 401(k) over time. Done right, disciplined investing could help him build a $1 million nest egg for a dignified retirement.
While it may mean working into his late 60s, this structured approach promises a path back to financial stability and renewed confidence.
Read more: You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
Breaking the cycle
In 2024, scammers stole $16.6 billion from U.S. consumers — a 33% increase over the previous year, according to the FBI’s IC3 report.
Victims aged 60 and older are a highly-targeted group and filed over 147,127 complaints. This age group collectively lost $4.8 billion — nearly double of the next age group with the second biggest loss total. This group itself was the next oldest demo at 50 to 59, highlighting the disproportionate impact on older adults.
Worse still, once someone falls prey, their information often ends up on dark-web “sucker lists,” where fraudsters mark them as easy targets for future scams and even contain details such as “the personal, behavioral, and emotional profiles of scam victims.” Individuals already victimized may counterintuitively make for easier second round targets because they may be eager to recoup money lost in a prior scam.
To halt this cycle, experts urge victims to act swiftly by reporting the fraud to the FBI’s Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC). They also recommend placing credit freezes or fraud alerts with the major bureaus to block any new accounts opened in the victimized person’s name.
Victims should seek emotional support, whether through trusted friends, professional counsellors, or specialized victim‐assistance programs, to counteract the isolation and stigma that can follow a financial (and undoubtedly emotional) betrayal.
Scams today combine sophisticated deception with a thriving secondary market in victim data.
By acting quickly, survivors like Mark can not only rebuild their finances but also insulate themselves against the risk of being scammed again and help break the wider stigma of falling victim to targeted scams.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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