Alabama Police Departments Report Surge in Cryptocurrency Scams Preying on Seniors Amid National Crisis
Pelham, AL – Local law enforcement agencies in Alabama, including Pelham and Hoover police departments, are issuing urgent warnings about a sharp increase in cryptocurrency scams targeting elderly residents. These sophisticated frauds, often involving Bitcoin ATMs, have led to significant financial losses for seniors, mirroring a nationwide epidemic of elder financial exploitation.
Local Incidents Highlight Growing Threat
The Pelham Police Department has reported an “uptick” in cryptocurrency-related scams aimed at seniors, prompting public alerts to raise awareness. While specific details from Pelham remain limited, nearby Hoover Police Department recently handled two harrowing cases that underscore the tactics employed by these criminals.
In the first incident, an elderly victim encountered a fraudulent pop-up ad on her computer claiming an issue with her Apple account. The ad directed her to a fake customer support number, where a scammer posing as a bank representative convinced her to withdraw $20,000 in cash and deposit it into a Bitcoin machine at a gas station on the 1600 block of Montgomery Highway.[1]
Weeks later, a similar scam struck another senior in the same area. Alert citizens spotted the suspicious activity and notified police, enabling intervention before further losses. However, investigators believe the perpetrators operate from overseas, making fund recovery exceedingly difficult.[1]
“Requests to withdraw cash and convert it to cryptocurrency or gift cards are a major red flag,” Hoover Police stated in their advisory. Scammers create urgency, discourage contacting authorities, and use personal details to seem legitimate.[1]
National Scale of the Crisis
This local surge aligns with alarming national trends. According to the Chainalysis 2026 Crypto Crime Report, scammers stole an estimated $17 billion in cryptocurrency fraud in 2025 alone, with impersonation scams surging 1400% year-over-year.[2] Elderly Americans, particularly those over 60, bore the brunt, reporting nearly $4.9 billion in losses to financial exploitation in 2024, the highest of any age group, per AARP and FBI data.[2]
The FBI’s Internet Crime Complaint Center (IC3) noted $2.8 billion in crypto-related losses for seniors in 2024, a figure that continues to climb. Cryptocurrency ATMs have become a key tool in these schemes, serving as irreversible on-ramps for laundering stolen funds through complex money laundering networks (CMLNs).[2]
Federal Trade Commission (FTC) reports further corroborate the spike, with seniors losing $2.4 billion to fraud, including cryptocurrency, wire transfers, and even demands for gold bars. Local police have linked these to evolving “grandparent scams,” where fraudsters impersonate relatives in distress, coupling emotional manipulation with crypto demands.[3]
How the Scams Operate
These frauds typically begin with tech support pop-ups, phishing emails, or fake customer service calls exploiting fears over account security. Victims are instructed to buy cryptocurrency via kiosks, often under false pretenses like “resolving a hack” or “protecting assets.” The transactions are irreversible, and funds vanish into overseas accounts.
Authorities emphasize key red flags:
- Unsolicited contacts urging immediate action.
- Requests for cash withdrawals to buy crypto, gift cards, or gold.
- Scammers knowing personal details but refusing official verification.
- Pressure not to contact banks or family.
Legitimate companies never demand crypto payments or sensitive info over the phone. Police recommend verifying contacts via official websites and monitoring accounts regularly.[1]
Challenges in Prosecution and Prevention
Hoover’s Financial Crimes Unit investigates these cases, but overseas suspects hinder justice. Nationally, prosecutors like Brooklyn DA Eric Gonzalez vow to use advanced tech to freeze assets and aid victims, but recovery rates remain low.[2]
Prevention relies on education. Police urge families to discuss scams with elders, especially those with retirement savings but less tech savvy. “Review these tips with vulnerable family members,” Hoover PD advises.[1]
| Age Group | 2024 Losses | Key Scam Types |
|---|---|---|
| 60+ | $4.9B total $2.8B crypto |
Impersonation, ATM scams |
| All Ages | $17B crypto (2025) | Exchange hacks, pig butchering |
Expert Advice for Protection
To safeguard against these threats:
- Install reputable antivirus software and avoid suspicious pop-ups.
- Never share personal info or send money based on unsolicited calls.
- Report incidents immediately to local police and the FTC at ReportFraud.ftc.gov.
- Consult family or financial advisors before large transactions.
As cryptocurrency adoption grows, so does its abuse. Alabama law enforcement’s proactive alerts aim to stem the tide, but vigilance remains the best defense for seniors nationwide.
Sources: Hoover PD reports, Chainalysis 2026 Crypto Crime Report, FTC data.