GEORGIA – A man was charged for his role in a multi-state scheme that involved extorting over $1 million by targeting senior citizens with unauthorized purchases of gold bars, gift cards, and large sums of money, according to the FBI.
Xiao Kun Cheung, 58, faces charges of wire fraud, drug possession, and receiving illegal funds. If convicted, Cheung could face up to 20 years in prison, followed by a period of supervised release.
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“This indictment uncovers a financially devastating scheme that targeted seniors up to 92 years old. It represents just a fraction of the multitude of victims of elder fraud each year in the United States,” U.S. Attorney Steinberg said. “With our law enforcement partners, we are committed to protecting vulnerable citizens from the predation of scam artists.”
Officials alleged that Cheung was part of a conspiracy to target elderly victims in multiple states by phone calls or pop-up messages on their computers, falsely claiming that the victim’s computer or financial accounts had been compromised.
Investigators said Cheung claimed he could help the seniors and convinced them to withdraw large sums of money, purchase gift cards, and buy gold bars, which he said would be delivered to a government agency for safekeeping.
In March, Cheung was arrested while attempting to pick up $132,000 worth of gold bars from one of the victims.
The FBI said Cheung is a previously deported Chinese national illegally present in the United States. He is being held in federal custody.
According to the FBI Internet Crime Complaint Center (IC3), in 2023, individuals over the age of 60 were the most targeted group for fraud, suffering more than $3.5 billion in losses.
This represents a nearly 11% increase from 2022. In Georgia alone, senior victims reported losses exceeding $92 million, with the average loss for each elderly victim approaching $34,000. Moreover, law enforcement officials believe that fraud is significantly higher than reported, as many victims feel embarrassed or fear retaliation for reporting the crime.
Here are some scams to look out for:
- Government imposter fraud individuals who claim to represent a government agency such as Social Security, the Internal Revenue Service, Medicaid, or local, state, or federal law enforcement. They may contact “warn” of an alleged suspicious activity and take possession of money or other valuable items for “safekeeping.”
- Tech support scams involve telemarketers claiming to help with “hacking” or notifying of false lottery winnings or other prizes.
- Romance scams: scammers use dating sites, social networks, or chat rooms to contact older adults and build online relationships so the scammer can persuade the victim to send them money.
How can you avoid being a victim of a scam?
- Only trust technical support from known, trusted individuals or someone you’ve hired.
- Don’t accept calls from scammers claiming you must act immediately; before taking any action, call the person or the person’s relative to validate the request.
- If a caller claims to be from an established organization such as a charity or law enforcement, look up the number of the organization independently and call them to verify the request.
- Never allow anyone to discourage you from seeking information, verification, and counsel from family or friends before making any financial transaction.
- The federal government will never call you to ask for personal information.
- Do not send money, gift cards, or wire transfers to anyone you’ve met only online.
- Do not click on links sent to you in emails you don’t know or text messages.
If you or someone you know has been a victim of elder fraud, contact the Internet Crime Complaint Center’s Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311) or visit https://www.justice.gov/elderjustice for more information.
