A 73-year-old Traverse City woman reportedly lost $42,000 after responding to a fake Microsoft pop-up and email that led her to call fraudsters posing as Microsoft and the Federal Reserve. The scammers instructed her to buy $6,000 in Lowe’s gift cards and to wire $36,000 to an account she believed was the Federal Reserve. Traverse City Police are investigating; recovery depends on a possible bank wire recall and any action to freeze gift-card balances. Authorities urge victims to report the incident to the FBI IC3 and the FTC.
73-Year-Old Traverse City Woman Scammed Out Of $42,000 After Fake Microsoft Pop-Up And 'Federal Reserve' Call
Image Credit: Samuel Boivin / Shutterstock.
A 73-year-old woman in Traverse City, Michigan, reportedly lost $42,000 after scammers impersonating Microsoft and the Federal Reserve told her that money in her bank account was linked to a child pornography website.
The scheme began on July 27 when the victim encountered a computer pop-up and received an email that appeared to be from Microsoft. Both messages displayed a phone number and urged her to call. She first spoke with one man and was later directed to call a second number, where another caller continued the deception.
How the scam worked: The callers claimed the woman’s IP address had been traced and that $42,000 from her bank account was tied to illegal activity. They instructed her to buy $6,000 in Lowe’s gift cards and then to visit her bank to wire $36,000 to an account she was told belonged to the Federal Reserve. Together the two payments matched the $42,000 figure the scammers cited.
Investigation and status: The Traverse City Police Department is investigating. Authorities have not identified the callers, the receiving financial institution, or the account holder who received the wire. Police said they have no record confirming any transaction linking the victim’s funds to a child pornography site. Any recovery of funds depends on whether the bank can recall the wire and whether gift-card issuers can freeze or refund remaining balances; no recoveries have been announced.
What victims should do:
- Contact your bank’s fraud or wire-transfer department immediately and request a recall. Be ready to provide the transfer date, amount, receiving institution, receiving account information and any reference or confirmation numbers.
- Contact each gift-card issuer right away, report that the cards were used in a scam, and ask whether any remaining balance can be frozen or refunded.
- File a complaint with the FBI’s Internet Crime Complaint Center (IC3) and at ReportFraud.ftc.gov.
Official warnings: No legitimate business or government agency requires payment by gift cards or cryptocurrency. Microsoft specifically warns it will never ask customers to pay for technical support with gift cards or cryptocurrency. The Federal Reserve says it never contacts the public with unsolicited calls or emails requesting money or personal financial information.
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