REDWOOD CITY — Police on Thursday arrested a 22-year-old Fresno man they say tried to scam an elderly Redwood City woman.
The victim contacted police around 3 p.m. Wednesday after becoming suspicious that she was the target of a fraud scheme, the Redwood City Police Department said in a news release.
Police said the woman reported receiving messages on her iPhone that AppleCare had detected suspicious activity. She then spoke with people posing as support representatives, who told her there were fraudulent charges associated with her bank account.
The suspects instructed the woman to withdraw cash from her account and hand it over to a courier, who would come to her residence to collect the money, police said.
Police intervened at that point. They coordinated further communication with the suspects, as well as put together a plan to identify and apprehend the courier if one…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.