‘I’m ashamed’: Widowed pensioner loses $150k to Kochie scam

A widowed Queensland pensioner has revealed the series of “charming” emails that saw her lose more than $150,000.

A pensioner from Queensland who recently retired has been scammed out of over $150,000 from her retirement savings and Superannuation. The scam was triggered by a fake news article about cryptocurrency that featured former Sunrise host David Koch, even though he had no connection to it.

Sarah*, a 73-year-old new widow, told news.com.au she considered herself “tech savvy” and well versed in small-time trading before a scammer took her for a ride starting in early 2022.

“It had David Koch on it, and I think he’s really good … I don’t know him personally, but I feel like I know him and trust him,” she said of the inconspicuous news article she came across online.

The article appears to tick most of the boxes for an online news article – clear imagery of Koch and Channel 10 presenter Waleed Aly, sleek web design and a big, bold headline that leapt off the page screaming, “SPECIAL REPORT: David James Koch’s latest investment has experts in awe and big banks terrified.”

A Queensland pensioner has been scammed by a fake news article featuring David Koch's image. Picture: Supplied.

However, the article was fake and filled with links to a shonky cryptocurrency investment firm and, in realty, had nothing to do with Koch - despite using his pictures.

“I really wanted to buy just 10,000 worth of bitcoin as a side thing – I know it goes up and down, I’m not worried about that,” Sarah told news.com.au, revealing she followed a link on the fake article.

Sarah rang the number on the site, telling them what she wanted to do.

It wasn’t long before she was assigned a “personal account manager” named Adam.

“He was very persuasive, and he actually reminded me of someone I was very fond of many years ago who was very kind to me,” Sarah said.

“He was very friendly and would tell me things about himself.”

She was asked to download AnyDesk – which, among a range of features, allows one to control another’s computer remotely.

“Foolishly, I did that,” Sarah said.

“When they showed me the accounts, whether or not they’re actually real, or whether or not they even trade, (and) I had losses.

“I’m not used to owing money so that put me off guard and I’d think “OK, I’ll pay for that loss.”

“So it went on, more leverage, more losses.”

Emails between the pair, seen by news.com.au, are articulate with professional-looking signatures and branding.

Adam offered Sarah some weekend reading about investing. Picture: supplied.

‘Adam’, the fake account manager, is charming and polite, even emailing Sarah on occasion with some genuine news articles from sources like The Guardian they thought she would be interested in.

‘Don’t know what got into me’

Sarah is at a loss to explain what “took over” and let her slide into handing over an incredible amount of cash.

“I don’t know what got into me to keep on doing it,” she exclaimed.

“I really believed this guy was genuine.”

“I’m tech-savvy too and have trading experience, which is why it’s so annoying.”

She revealed banks would even call when large sums left her accounts to ask her, “are you sure you’re not being scammed?”.

“But the scammers would say ‘the banks are going to call you and ask about it – but they just want the interest’,” she said.

As she decided to pull the pin, yet to wise up to the fact she was being scammed, her faux account manager continued to press for more money, suggesting she tap into a term deposit she had or even borrow against her house.

“I just didn’t respond to them anymore,” she said, of cutting ties with the scammers in December 2022.

Emails from the scammer appear legitimate. Picture: supplied.

Sarah is just three years into retirement, but now most of her savings, even her Superannuation, are gone.

“I don’t have a comfortable buffer anymore. I worked until I was 70,” she said.

“It’s my fault, really. I’ve taken responsibility for it. I don’t bring it up with anyone because I’m ashamed of it – I was stupid.”

To make matters worse, Sarah has been flooded with calls and emails since cutting off contact with her original scammers, with more suspected scammers claiming to be “Asset Recovery Specialists”, able to get back her funds.

Koch fed up with being a scam ploy

After being approached about Sarah’s story, Koch told news.com.au he’s constantly “devastated” to learn of such stories.

According to Koch, he has been aware of the scam technique for about six years.

“I am absolutely devastated at the impact that these are having on Australians because they’re trusting my name, supposedly, and my face, as some sort of credibility – the scammers are using me to suck people in,” he said.

“I’m devastated for the people who are caught, and I feel betrayed by the digital platforms that allow these scam ads to appear.”

The prevalence of the ads has expanded rapidly, according to Koch, from Facebook to other social media platforms – to legitimate news sites and even a bible app through programmatic advertising feeds.

Former Sunrise host David Koch, who was recently appointed Compare the Market’s Economic Director, says he’s ‘absolutely devastated by the scams. Picture: Dylan Burns

The latter, Koch said, “adds to the confusion”.

He called for the Australian Competition and Consumer Commission (ACCC) and the Australian Securities and Investments Commission (ASIC) to crackdown on platforms hosting such posts.

Pinned to the top of his Instagram feed is a post denouncing paid fake ads on online platforms.

In January, it was reported that another 73-year-old Western Australian woman had fallen victim to a cryptocurrency scam, losing her life savings of $150,000 after being lured in by a deceptive advertisement featuring Koch.

In April, while still hosting Sunrise, Koch was forced to tell the public he was still alive after he was targeted by a cruel death hoax with criminals using his image and fake news articles of his passing to scam people.

Koch’s social media feeds often call out scammers. Picture: Supplied

The ACCC remains locked in a court battle against Meta, the owner of Facebook and Instagram, which the regulator alleges has been engaging in deceptive conduct by allowing the publication of fraudulent ads featuring well-known Australian public figures, including Koch and other personalities like Dick Smith and former NSW Premier Mike Baird, despite the celebrities never approving or supporting them.

“The essence of our case is that Meta is responsible for these ads that it publishes on its platform,” ACCC Chair Rod Sims said when the action was announced in March 2022.

As for cryptocurrency, Koch said, “I would never invest in crypto because they don’t pass my filters of investment.”

Regulator has eyes on digital platforms

Sarah is believed to have fallen victim to what the Australian Competition & Consumer Commission classifies as either a ‘remote access scam’ or an ‘investment scam’.

According to the ACCC, remote access scams convince victims to download or purchase software that allows them to access and take control of their victim’s computer.

Australians lose more money to investment scams than any other type, with ACCC reporting fake news stories or ads that claim a celebrity recommends this scheme to make big money as typical lures.

In 2023 alone, 5119 Australians have reported losing a total of $197,369, 716

A similar amount of Australians have lost a total of $12,101,964 to remote access scams.

The ACCC told news.com.au its newly introduced National Anti-Scam Centre (NASC) is currently working with digital platforms on ways to combat investment scams.

“The ACCC has also been working on Digital Platforms issues since 2017 and is aware that platforms have increasingly become gateways for how scammers reach consumers,” a spokesperson said.

The Government is also currently considering the ACCC’s September 2022 interim report of the Digital Platform Services Inquiry.

“This report recommends addressing the prevalence of online scams (alongside fake reviews and harmful applications) through new mandatory requirements for digital platforms which would complement the work of the ‘NASC”.

“These requirements would include ‘notice-and-action’ requirements, mandatory reporting, verification of certain business users, and improved dispute resolution.

The spokesperson also said the ACCC’s report calls for a new independent ombuds scheme to resolve digital platform and consumer disputes.