Understanding Modern Fraud With Detective Brian Erickson

Financial fraud is on the rise, affecting more individuals and businesses each year. As scammers grow more creative with their methods and tactics, it’s becoming increasingly important to stay informed. Knowing the warning signs and understanding how to protect yourself and your finances can help reduce the risk of falling victim to fraud. 

On this episode of Making Sense of Money, we sat down with Brian Erickson, a detective from the Lewiston Police Department for the past 25 years. Over this time, he has worked as a school resource officer and a major crimes detective. Now he focuses on complex fraud investigations. With his experience, it has given him a clear view of how scammers operate and how these crimes have an impact on people in the community. 

Common Fraud Trends 

One of the most prevalent in the area during this time is the impersonation scam. It starts with someone receiving a phone call from someone representing themselves as law enforcement. They will tell their potential victims that they have missed jury duty, warrants, or fines.  

The second fraud trend that has seen a rise in numbers is the sextortion scam. This often starts with someone receiving a letter or email claiming that someone has hacked their computer, threatening them with claims of compromising videos or photos. 

Both of these schemes end with a demand for payment through cryptocurrency, a digital form of payments that can include bitcoin or other electronic transactions. With these payment methods being demanded, it makes the transactions difficult to trace.  

What to Watch For 

Detective Erickson emphasizes the importance of recognizing warning signs and red flags:  

  • High-pressure threats and fear tactics 

  • Demands to stay on the phone or to keep the situation a secret 

  • Will only accept payments through Bitcoin, gift cards, or other money transfer apps 

  • Short deadlines requiring you to “act now” 

“Both of these scams share the same red flags” Erickson shares. If a message or a call makes you panic or question things, that’s often a sign of a scam. 

Cryptocurrency and the Challenges for Law Enforcement 

Cryptocurrency has become especially appealing to scammers because it is difficult to trace and allows funds to move instantly across multiple channels and wallets. “It’s what we call pseudo-anonymous, not having to identify themselves with where they’re putting the money," Erickson said. For those who may not fully understand how crypto works, these scams can be more convincing and harder to navigate. 

Because scammers often operate overseas, it makes it even more difficult for law enforcement to track or prosecute them. Even with specialized tools, there are still many obstacles they face when it comes to this type of fraud. With the wallet addresses rarely revealing who owns them and the speed of how quickly funds are transferred, investigators have a very short window to follow the money. _ 

How to Protect Yourself 

The best defense against fraud is awareness. Erickson encourages people to: 

  • Slow down and take a breath before reacting 

  • Verify claims by contacting agencies directly 

  • Talk to a trusted friend, family member, or someone at your financial institution  

  • Never use cryptocurrency to pay fines, fees, or threats 

When something feels off, then it probably is. 

Final Thoughts 

Staying informed and cautious is key to protecting yourself from fraud. By recognizing red flags, verifying claims, and relying on trusted resources and relationships, it is possible to reduce the risk. As Erickson said, a moment of pause and careful thought can go a long way in keeping scammers at bay and keeping your finances safe.  

If you or someone you know is experiencing this type of fraud, help is available. Reach out to your local police department. Speak with someone at your financial institution.  

For more financial tips, and to stay up to date with Making Sense of Money, subscribe to the podcast here, and be on the lookout for more helpful advice on financial education.