California man arrested in Texas investigation into crypto scam

NEW BRAUNFELS, Texas - A California man has been charged in connection with an attempted cryptocurrency scam targeting an elderly homeowner in Texas.

The New Braunfels Police Department says this arrest is part of an ongoing investigation into an email and fraud scheme targeting the elderly.

What we know:

New Braunfels police say that on March 6, officers responded to a home on Lime Gruene Road where an elderly homeowner reported he had been the target of a scam.

The man told police he had received an email about fraudulent activity on a cryptocurrency account. That email contained instructions on how to reverse the fraudulent activity, which included allowing a third party remote access to his computer. 

The scam also required the man to withdraw a large sum of cash to give to a courier. The resident realized it was a scam before handing over any money, and called the police.

The next day, March 7, officers waited for the courier to come pick up the cash and took the suspect, 25-year-old Chaopeng Huang of San Lorenzo, California, into custody.

Huang was taken to the Comal County Jail and charged with:

• Exploitation of the Elderly
• Financial Abuse of the Elderly (>=$2500<$30,000)
• Possession of a Controlled Substance (Penalty Group 1/1-B<1G)

Bond was set at a combined $25,000. Huang bonded out on March 9 and was released from custody.

What's next:

New Braunfels police say that the investigation into this scam and those responsible continues by its Criminal Investigation Division with assistance from the U.S. Department of Homeland Security

Additional arrests and charges may be pending.

How do I avoid being a victim of a scam like this?

Local perspective:

New Braunfels police note that while scammers often target the elderly, they don't exclusively target that demographic. 

NBPD is also making the community aware of the scam before anyone else receives similar emails. If you or someone you know does receive a similar email, NBPD advises that you:

• DO NOT reveal any personal information 
• DO NOT withdraw money from a bank or purchase gift cards
• Call the non-emergency number at 830-221-4100 to report the incident

NBPD is also reminding residents that there are a wide variety of email and phone scams and that criminals can pose as law enforcement, IRS agents, Publisher’s Clearinghouse employees, student loan agents, or credit card debt agents.

What you can do:

Police are also providing tips and advice to help prevent people from being victims of scam artists:

• If you didn’t initiate the phone call, be VERY wary.
• BE VERY CAREFUL about giving out personal information by phone or email.
• Legitimate businesses and government organizations will NEVER ask you to make a payment in cash or by purchasing gift cards or temporary credit cards.
• BE WARY about letting anyone into your home or onto your property without proper identification, marked vehicles, etc., especially when that person shows up unannounced or unsolicited.

The FBI also has information on common fraud schemes and how you can protect yourself here.