Police have arrested a fake Uber driver on suspicion of stealing more than $300,000 in virtual currency from unwitting passengers.
Officers in Scottsdale, Ariz., a desert city east of Phoenix, arrested Nurhussein Hussein, 40, on Wednesday on felony theft, fraud and money laundering charges, the Scottsdale Police Department said in a statement.
In a joint investigation with the U.S. Secret Service field office in Phoenix, police say the suspect posed as an Uber driver and ordered real rides outside a Scottsdale hotel between March and December of this year. It was discovered that the plane was carrying an unsuspecting passenger. .
Police said Hussain asked the victim to use his cell phone on the pretext that he needed to get directions or connect to the Uber app.
“While operating the unsuspecting victim's mobile phone, the suspect transferred virtual currency from the victim's digital wallet to his own digital wallet,” police said in a statement.
The suspect was booked into the Maricopa County Jail, and police and the Secret Service continue to investigate. He was charged with two counts of money laundering, two counts of fraudulent scheme and two counts of theft. He appeared for a bond hearing on Wednesday and is scheduled to appear again on Dec. 18.
The court heard on Wednesday that the defendant told one of his alleged victims: “If you don't calm down, something bad is going to happen.”
The suspect was held on $200,000 bail, with prosecutors telling the court he regularly travels to Ethiopia and is a flight risk. Bond conditions include continued electronic monitoring, prohibition on all internet use and residence in Maricopa County.
Cryptocurrency fraud is a rapidly growing and lucrative crime, and a major concern for law enforcement. The FBI says it has received more than 69,000 complaints nationwide and reported $5.6 billion in losses from this type of fraud in 2023.
The actual number may be many times higher, as some victims are reluctant to contact authorities.
According to the FBI's first Crypto Fraud Report, released in September, more than 16,000 complaints about crypto fraud were received from people over the age of 60.
Arrests related to cryptocurrency fraud are relatively rare. Four accused fraudsters, three from Southern California and one from a Chicago suburb, allegedly convinced victims to part with more than $80 million in a so-called “pig butchering” scheme last December. authorities announced Thursday.
