Fake Uber Driver Arrested for $300,000 Cryptocurrency Theft in Scottsdale, Arizona
A man pretending to be an Uber driver in Scottsdale stole $300,000 in cryptocurrency from passengers. Learn how the scam unfolded and its implications for crypto security.
How the Scam Unfolded
According to the Scottsdale Police Department, Nuruhussein Hussein tricked passengers by impersonating the Uber driver they had ordered. Standing outside a local hotel, he confidently greeted them by name—a tactic that added legitimacy to his ploy, as reported by Fox10 Phoenix.
While the report doesn’t explain how Hussein knew the passengers’ names or ride details, investigators are digging deeper into the case.
Once the passengers entered his vehicle, Hussein asked to borrow their phones, claiming his was broken. In one instance, he even used the excuse of checking the passenger’s Uber app to resolve an apparent mix-up with the driver’s arrival status.
With their phones in hand, Hussein allegedly accessed and emptied their Coinbase accounts, transferring the funds to his own wallet. When one passenger grew suspicious, Hussein reportedly threatened them, saying, “Chill, or something bad will happen.”
Arrest and Legal Proceedings
On December 11, U.S. Secret Service agents arrested Hussein, charging him with theft, fraud, and money laundering. Prosecutors secured a $200,000 cash bond to prevent his release without significant financial commitment.
Hussein is also prohibited from accessing the internet or traveling overseas due to concerns about evidence tampering or fleeing to Ethiopia, a country he visits frequently. His next court appearance is scheduled for December 18.
Offline Crypto Robberies on the Rise
This case adds to a growing list of offline crypto-related crimes. According to a GitHub repository maintained by crypto advocate Jameson Lopp, there have been 19 such incidents worldwide in 2024. While this figure shows a decline compared to the 32 incidents in 2022, it’s consistent with the 17 reported in 2023.
Recent examples of offline crypto crimes include:
- Dean Skurka’s Kidnapping: The CEO of WonderFi Technologies was abducted in Toronto in November. His captors demanded a $720,000 ransom, which was paid before his release.
- $5 Wrench Attack in Ukraine: A Ukrainian man was tied up and threatened with weapons in a hotel room, ultimately losing $250,000 in USDT to the attackers.
- Lessons for Crypto Holders
- This incident underscores the importance of safeguarding your cryptocurrency from both online and offline threats. Here are some tips:
- Limit Access to Your Devices: Never hand over your phone to strangers, even in seemingly harmless situations.
- Enable Two-Factor Authentication (2FA): Strengthen your accounts by requiring a second form of verification for transactions.
- Use Hardware Wallets: Store your cryptocurrency in hardware wallets to keep it safe from unauthorized access.
- Stay Vigilant: Be cautious of scams, especially when traveling or using ride-hailing services.