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Minnesota's fraud problem has ballooned to $9 billion, with criminals increasingly targeting the state's Medicaid programs through housing scams, cryptocurrency schemes, and other sophisticated frauds. Five new defendants have been recently charged, and authorities warn that fraudsters are now traveling to Minnesota specifically to exploit vulnerabilities in the system—a phenomenon officials call "fraud tourism." Taxpayers and residents should remain vigilant about housing and investment opportunities, verify credentials of financial advisors, and report suspicious Medicaid activity to authorities.

# Fraud and Scams Summary Minnesota Aging Pathways is offering a free virtual seminar on January 14 to help people—particularly older adults—learn how to prevent, detect, and report fraud and scams, which are increasingly targeting seniors. The presentation will cover fraud prevention strategies and information from the Senior Medicare Patrol federal program, with registration available through Eventbrite or by calling 800-333-2433. To protect yourself, attend educational sessions like this one and learn how to recognize warning signs of scams targeting your personal information.

Mavious Redmond, a 54-year-old from Austin, Minnesota, was sentenced to one year and one day in federal prison for impersonating her deceased mother to fraudulently collect Social Security benefits over 25 years, netting over $360,000. Beginning in 1999, Redmond deliberately circumvented Social Security Administration reporting requirements by forging signatures, using false personal information, and impersonating her mother in phone and in-person interactions. She was also ordered to serve supervised release following her prison term for this scheme that defrauded the Social Security program and taxpayers.

This article describes common scams targeting consumers—including IRS impersonation calls, toll payment texts, and lottery email schemes—and notes that fraud losses reached $12.5 billion in 2024, a 25% increase from the prior year. Scammers typically use spoofed numbers, demand urgent payment, and attempt to steal personal information or get victims to click malicious links. The article provides five resources for victims: filing complaints with state agencies (Wisconsin's Department of Agriculture, Trade and Consumer Protection or Minnesota's Attorney General's Office), reporting to local police and the FBI's Internet Crime Complaint Center, contacting AARP's Fraud Watch Helpline at 877-908-

Minnesota Vikings linebacker Dallas Turner lost $240,000 in an imposter scam when a caller falsely claiming to be from JP Morgan Chase convinced him to wire funds to protect his account from fraudulent activity. Imposter scams are the second-highest fraud category, accounting for $2.95 billion in losses in 2024, and commonly originate via spoofed text messages that mimic legitimate banks; consumers should independently verify suspicious communications and never wire funds to "protect" accounts, as legitimate banks never request such actions.

Christina Chapman, an Arizona and Minnesota resident, was recruited via LinkedIn in March 2020 to facilitate a North Korean government scheme that placed thousands of remote IT workers—using stolen identities—into positions at major US companies including Nike and Fortune 500 tech firms, with Chapman managing "laptop farms" and validating fraudulent identity documents. Chapman's role helped North Korea generate millions of dollars for its nuclear weapons program while enabling identity theft and potential cyber intrusions into US corporate networks. She was sentenced to eight years in prison for her participation in the scheme.

Recent CDC data indicates that approximately 1 in 10 Americans aged 60+ experience elder abuse annually. A comprehensive analysis of senior safety across U.S. states, measuring scam reports, homicide rates, violent death rates, and quality of life, ranked Massachusetts as the safest state for seniors (score: 89.96), followed by Minnesota (89.03) and Nebraska (88.78), with scam rates against seniors ranging from 95.5 to 141.1 reports per 100,000 people depending on the state.

Minnesota Attorney General Keith Ellison warned residents about door-to-door pest-control scams involving high-pressure sales tactics, hidden fees, and undisclosed long-term contracts. The scam typically targets consumers off-guard during summer months, with fraudsters failing to deliver services, imposing surprise charges, or forcing automatic contract renewals. Consumers are advised to avoid pressure tactics, read contracts carefully before signing, verify local peddler registration, and report suspected scams to the Attorney General's office rather than remaining silent out of embarrassment.

**More than 200 seniors attended the Alexandria Senior Expo on June 26, where law enforcement officials and banking professionals educated attendees on recognizing and preventing phone, internet, and mail-based scams.** The event, hosted by Triad (a partnership of Douglas County Senior Services, Sheriff's Office, and Alexandria Police), featured 30 vendor tables, breakout sessions, and a keynote speaker from the Minnesota Department of Commerce. Attendees shared personal experiences with scams, including a fake utility bill for $53.24, grandson scams, and tech support scams, highlighting the importance of discussing fraud experiences to help others avoid similar victimization.

An Eagan, Minnesota couple in their 70s nearly lost $125,000 to a scam after receiving a fraudulent call impersonating the Federal Trade Commission, instructing them to transfer funds to Bitcoin to "protect" their identities following a recent data breach. A vigilant bystander at a local eatery noticed something suspicious and called 911, allowing police to arrive and stop the transaction moments before completion. The incident highlights the rising prevalence of identity theft scams targeting seniors through impersonation of trusted government agencies.

A Maple Grove woman lost over $450,000 in bitcoin, gift cards, wire transfers, and cash to scammers posing as U.S. government agents between March and April. The suspects initiated contact via unsolicited email in early March, then used WhatsApp to communicate with the victim and falsely claim they needed funds for a federal investigation, promising reimbursement. The case represents at least the second major cryptocurrency theft in Minnesota involving email-based fraud, with suspects remaining at large.

Senator Tina Smith is urging the Trump Administration to address a widespread text message scam targeting Minnesotans, in which fake DMV messages claim recipients have unpaid traffic tickets and threaten arrest to coerce online payments. The scam has been reported across multiple states including Georgia, New York, Indiana, Florida, New Jersey, and Colorado, and Smith has requested intervention from the Department of Justice to combat the scheme's scale and sophistication.

Thousands of Minnesotans received fraudulent text messages impersonating the Department of Motor Vehicles, threatening legal consequences and demanding payment for fictitious traffic violations. This scam, which has also affected residents in Georgia, New York, Indiana, Florida, New Jersey, and Colorado, puts victims at financial risk and creates anxiety about message authenticity. Senator Tina Smith is urging the Trump Administration to take action against the widespread scheme.

DMV text message scams, known as "smishing," are expanding across multiple states including Colorado, Indiana, Minnesota, California, Michigan, and North Carolina, with earlier warnings issued in Illinois, Pennsylvania, Florida, New Jersey, Georgia, and New York. These fraudulent texts falsely claim recipients have unpaid traffic tickets or outstanding bills and threaten consequences like vehicle registration loss, driving privilege suspension, or credit score damage unless they click a link and pay. The Federal Trade Commission advises recipients not to click links or respond, instead contacting their state DMV directly through official channels and reporting the messages to their wireless provider, the FTC, and the FBI's Internet Crime Complaint Center.

Minnesota Department of Public Safety issued a warning about scam text messages threatening residents with fines and license suspension for alleged outstanding traffic tickets. The texts falsely claim to be from the "Minnesota Department of Motor Vehicles" or "DPSMN," include fake official language and links to fraudulent websites designed to steal personal information, and demand payment via wire transfer or similar methods. Officials recommend not responding to or clicking links in these messages, deleting them, and contacting Driver and Vehicle Services (DVS) directly through drive.mn.gov if verification is needed; anyone who has already provided information or money should contact their bank and report the incident to law enforcement.

Minnesota's Department of Public Safety is warning residents of a scam involving fake text messages impersonating the state's motor vehicles department, falsely claiming unpaid traffic tickets and threatening legal action to pressure recipients into payment. The scam texts often escalate in threatening language across multiple messages and direct victims to click links that steal personal information. DPS advises residents not to open any payment links in unsolicited texts and notes that the department never requests payment via text message; victims should report incidents to the FBI's Internet Crime Complaint Center.

Minnesota state officials warned residents of a phony text message scam impersonating a non-existent "Minnesota Department of Motor Vehicles (DPSMN)" that falsely claims recipients have outstanding traffic tickets and threatens license suspension and credit damage unless they pay through a suspicious link. The Minnesota Department of Vehicle Services confirmed the scam is circulating statewide and emphasized they never request payment via text. Officials advised residents to delete the messages, avoid clicking links, and report suspected scams to the Minnesota Attorney General's Office or Federal Trade Commission.

Seniors are increasingly targeted in cryptocurrency scams because scammers view them as wealthy, trusting, and less technologically savvy, exploiting the irreversible nature of crypto transactions and victims' reluctance to report fraud. The FTC reports growing losses from crypto investment fraud, romance scams, and government impersonation, with seniors in Beaufort County, South Carolina alone losing over $3.1 million in 2024, while sophisticated schemes using AI voice cloning and fake websites are becoming more prevalent. Examples include British pensioners losing hundreds of thousands to romance fraud operations in Cambodia, Minnesota crypto ATM scams that cost over $189 million in 2023, and government impersonation

Julie Anne Darrah, a 52-year-old California investment adviser, stole over $2.2 million from elderly clients between November 2016 and July 2023 by gaining control of their accounts through power of attorney and trustee documents, then liquidating their assets without authorization. She spent the stolen funds on luxury vehicles and properties, leaving some victims without resources for end-of-life care, and also defrauded a Minnesota investment firm of approximately $5.4 million through false statements. Darrah pleaded guilty to wire fraud in March 2025 and was sentenced to 121 months in federal prison, with a civil judgment requiring her to pay $2,416,

The Minnesota Department of Transportation warned motorists about a phishing scam where scammers send fake text messages and emails impersonating E-ZPass toll agencies, claiming recipients owe money and requesting payment through fraudulent links to steal personal and financial information. MnDOT emphasized that legitimate tolling agencies never request sensitive information via text or email, and advised recipients to verify any toll debt through official websites and contact customer service directly rather than clicking suspicious links.

Kenosha, Wisconsin residents are falling victim to a rising cryptocurrency ATM scam where scammers trick victims into depositing cash into bitcoin machines, with three victims losing a combined $60,000 in untraceable funds. Scammers pose as police, banks, or tech support and pressure victims with urgent demands for payment, sometimes instructing them to deposit specific amounts like $9,500 into crypto ATMs. The Kenosha Police Department advises residents to hang up on suspicious calls, refuse urgent money demands, never use crypto ATMs, and is calling for state regulations similar to Minnesota and North Dakota that limit daily crypto ATM deposits to $2,000.

Julie Darrah, a Santa Maria investment advisor, was sentenced to over 10 years in federal prison for stealing approximately $2.25 million from elderly clients of her advisory firm between 2016 and 2023. Darrah manipulated vulnerable elderly clients by gaining their trust, convincing them to authorize fund transfers from their accounts into her own, and then used the stolen money for personal purchases including properties and luxury vehicles, leaving some victims unable to afford end-of-life care. She was also ordered to repay $2.4 million in restitution and a Minnesota investment firm lost over $5 million after acquiring her company based on false representations.

Investment advisor Julie Anne Darrah of Santa Maria was sentenced to 121 months in federal prison for stealing approximately $2.25 million from elderly clients between November 2016 and July 2023 by obtaining control of their assets and liquidating them without consent. Darrah exploited her clients' trust—often portraying herself as a caring daughter figure—to convince them to sign documents granting her power of attorney and trustee status, then transferred funds to her own accounts to purchase properties and luxury vehicles, leaving some victims unable to pay for end-of-life care. Additionally, a Minnesota-based investment firm that acquired Darrah's company incurred $5.4 million in losses

The Better Business Bureau warns that scammers are exploiting confusion around the Real ID deadline by creating fraudulent websites and sending unsolicited messages promising quick access to Real IDs in exchange for sensitive personal and financial information. Real ID applications can only be obtained in person at the DMV, which will never contact individuals via text, email, social media, or phone to request personal information. Consumers should avoid entering information on suspicious sites and report suspected scams to the BBB Scam Tracker or the Office of the Minnesota Attorney General.

The Senior LinkAge Line, a free Minnesota state service, will host a virtual presentation on May 14 from 10-11:30 a.m. focused on health care fraud, waste, and abuse prevention for older adults. The presentation, which includes information from the Senior Medicare Patrol federal program, will cover fraud detection, prevention strategies, and reporting procedures to help seniors protect their personal information. Individuals needing accommodations to participate can contact Dianne Kiser at [email protected] by May 9.

Texting scams are becoming increasingly sophisticated, with common schemes including fake unpaid toll notices, prize offers, student loan assistance, and AI-generated celebrity videos (such as Kevin Costner impersonations) that request money. Minnesota ranks 12th nationally for impostor scams with a median loss of $800 per victim, and experts advise recognizing red flags such as urgent requests, unknown senders, international numbers, and requests for gift cards or remote computer access, noting that legitimate government agencies and the FBI never ask for payment via gift cards.

Phishing scams, particularly fake shipping notices impersonating UPS, are the most common fraud targeting Minnesotans, with 69 percent of state residents reporting low confidence in spotting such attempts. One in five Minnesotans have received localized phishing messages that reference nearby towns or businesses, making them increasingly difficult to distinguish from legitimate communications. The article advises consumers to verify deliveries directly through official websites, avoid clicking suspicious links, and be wary of urgent language and requests for personal information.

Badetito O. Obafemi, a 42-year-old Nigerian national, was convicted and sentenced to 24 months in prison for his role in an online romance scam that defrauded elderly victims in Missouri, Minnesota, and New Jersey between 2016 and 2018. Obafemi pleaded guilty to money laundering conspiracy and was ordered to pay $311,520 in restitution; he received funds from victims through personal and business accounts while scammers posed as romantic interests requesting money for business, medical, travel, and other expenses. The Taney County victim alone lost $27,460, with scammers attempting to solicit an additional

Badetito O. Obafemi, a 42-year-old Nigerian national, was sentenced to two years in federal prison for his role in a transnational romance scam that defrauded elderly victims across Missouri, Minnesota, and New Jersey between 2016 and 2018. Obafemi pleaded guilty to money laundering conspiracy and was ordered to pay $311,520 in restitution; one victim alone lost $27,460 after being lured through a fake Facebook identity. The scam involved establishing fake online relationships and soliciting funds under false pretenses such as business investments and medical emergencies, with Obafemi laundering proceeds through two Georgia

Badetito O. Obafemi, 42, was sentenced to 24 months in federal prison for orchestrating a romance scam that defrauded elderly victims in Missouri, Minnesota, and New Jersey of approximately $311,520 between 2016 and 2018. Obafemi and co-conspirators posed as individuals like "Kevin Condon" online to build relationships with victims and convince them to send money for various expenses, with Obafemi receiving the fraudulent wire transfers through personal and business bank accounts he controlled. The court ordered Obafemi to pay full restitution to victims and serve three years of supervised release following his incarceration.

A Georgia man, Badetito O. Obafemi, was sentenced to 24 months in federal prison for his role in a romance scam that defrauded elderly victims across multiple states, including a Taney County, Missouri resident who lost $27,460. Obafemi conspired with scammers who posed as romantic interests online, requesting money for various expenses, and received the stolen funds through personal and business bank accounts he controlled. He was ordered to pay $311,520 in total restitution to all victims across Missouri, Minnesota, and New Jersey.

Badetito O. Obafemi, a 42-year-old Georgia man, was sentenced to two years in federal prison for his role in romance scams that defrauded elderly victims across Missouri, New Jersey, and Minnesota between 2016 and 2018. Obafemi used social media to establish fake romantic relationships with victims, convincing them to send money for various expenses, and coordinated the receipt and transfer of stolen funds through multiple bank accounts; he was ordered to pay over $311,500 in restitution to his victims. The scheme targeted at least one victim in Missouri who lost more than $27,400 to a scammer posing as "Kevin Condon

Badetito O. Obafemi, a 42-year-old Georgia man, was sentenced to 24 months in federal prison for his role in an online romance scam targeting elderly victims in Missouri, Minnesota, and New Jersey between 2016 and 2018. Obafemi conspired to receive fraudulent wire transfers totaling $311,520 by coordinating bank accounts and fund transfers, with one victim in Missouri alone losing $27,460 after being deceived by someone claiming to be "Kevin Condon" seeking money for overseas business and medical expenses. He was ordered to pay full restitution to his victims and serve three years of supervised release following his incarceration.

Badetito O. Obafemi, a 42-year-old Georgia man, was sentenced to 24 months in federal prison for his role in a romance scam that defrauded elderly victims in Missouri, Minnesota, and New Jersey of approximately $311,520 between 2016 and 2018. Obafemi received wire transfers from victims who were deceived by scammers posing as individuals like "Kevin Condon," who fabricated stories about business expenses, medical issues, and legal problems to solicit money. The court ordered Obafemi to pay full restitution and serve three years of supervised release following his incarceration.

Badetito O. Obafemi, a 42-year-old Georgia man, was sentenced to two years in federal prison for his role in a romance scam that defrauded elderly victims across Missouri, New Jersey, and Minnesota between 2016 and 2018. Obafemi and co-conspirators used social media to build fake relationships with victims and convince them to send money for various pretexts, with one victim losing over $27,400; he was ordered to pay $311,500 in restitution. The investigation involved multiple federal agencies and resulted in charges for money laundering conspiracy.

Minnesota lawmakers are proposing to expand the state's Medicaid fraud control unit from 32 to 41 investigators and increase penalties for health and elder-care providers who defraud Medicaid, with fines up to $100,000 and prison sentences up to 20 years for thefts exceeding $35,000. The $390,000 annual expansion is justified by the fraud unit's track record of recovering $53 million in civil penalties and criminal restitution over six years while costing the state $6 million. Attorney General Keith Ellison argues the expansion is critical to protect Medicaid's integrity and preserve public support for the program serving 1.4

Scammers have created fake Joann Fabrics websites offering discounts up to 91% following the company's announcement that all stores are closing in 2025. Multiple Minnesota residents have been victimized through fraudulent sites like joann-liquidation-us.com advertised on Facebook, Instagram, and Pinterest, with victims reporting unauthorized charges on payment methods and worthless gift cards purchased at steep discounts. The Better Business Bureau warns that this scam continues to resurface as scammers capitalize on the legitimate store closures to deceive crafters seeking liquidation deals.

The La Crescent Police Department reported five scam calls in one day targeting residents with a "grandchild in jail" premise, where callers falsely claimed relatives were arrested after vehicle accidents and demanded money for bail. Two families nearly lost $9,000 and $18,000 respectively before recognizing the fraud; scammers instructed victims to lie to banks about withdrawal purposes and used spoofed local phone numbers and computer-generated voices to appear legitimate. Police advised community members to verify incidents directly with family, noting that scammers specifically target elders with landlines using fear tactics, and emphasized that government agencies like the IRS and Social Security do not initiate arrest-related calls.

Scammers in Minnesota and Iowa are targeting elderly residents with a "bail scam" where they claim a family member has been arrested and demand immediate payment to secure their release. The scam escalates by claiming a gag order prevents victims from telling anyone and requesting in-person payment, making the money impossible to recover. Law enforcement urges residents to inform elderly family members and report any such calls.

The Senior LinkAge Line is offering a free virtual presentation on April 9 from 10-11:30 a.m. focused on health care fraud, waste, and abuse prevention for older adults. The presentation, developed in partnership with the Senior Medicare Patrol, provides information on fraud prevention, detection, and reporting to help seniors protect their personal information. The Senior LinkAge Line is a statewide Minnesota service designed to help older adults and caregivers access resources and support.

Two individuals were arrested in Olivia, Minnesota after attempting to collect cash from a resident through a computer and phone scam that compromised the victim's computer. The victim had already handed over an unspecified sum of cash to a courier on February 11, 2025, and the scammers subsequently demanded an additional $40,000; officers arrested both suspects at the victim's residence when the courier arrived to collect the second payment. One suspect has been flagged with an immigration hold by ICE, and the case remains under investigation by the Olivia Police Department and the Bureau of Criminal Apprehension.

Brandon Michael Ferguson and his asphalt company, Community Blacktop LLC (operating under multiple aliases), defrauded consumers across Minnesota and nationwide by quoting low prices for asphalt work, then delivering substandard results and demanding inflated bills multiple times the original quote—with one victim quoted $2,000-$3,000 charged $17,000 instead. The Minnesota Attorney General reached a settlement requiring the company to dissolve and pay $100,000 in restitution to victims, with Ferguson admitting to procuring work through fraud and violating consumer protection laws. The AG urges victims to contact his office to help identify affected consumers, as poor recordkeeping makes tracking

In October 2023, Dennis from Maplewood lost $20,000 in a grandparent scam when callers impersonated his grandson and a public defender, claiming he needed bail money for a car accident, followed by a second request for $15,000 for a manslaughter settlement. The article reports that fraud victimizes billions of dollars annually from U.S. consumers, with Minnesota alone receiving over 22,000 fraud reports totaling nearly $103 million in losses during the first three quarters of 2024, and notes that recovery options remain limited. AARP Minnesota is advocating for a state Consumer Fraud Restitution Fund financed by civil penalties

The Senior LinkAge Line is offering a free virtual presentation on March 12 to educate older adults about health care fraud, waste, and abuse prevention, recognizing that scams targeting seniors are on the rise. The 90-minute session, in partnership with the Senior Medicare Patrol federal program, will cover fraud detection, reporting mechanisms, and personal information protection strategies. The Minnesota Board on Aging's Senior LinkAge Line provides free statewide support to help older Minnesotans and caregivers access services and resources.

Two Minnesota brothers, Abdulkadir Nur Salah and Abdi Nur Salah, pleaded guilty to federal wire fraud charges for their roles in the Feeding Our Future scandal, a $250 million scheme involving fraudulent reimbursements from the Federal Child Nutrition Program. One brother's restaurant received over $16 million in fraudulent payments, while the other registered a fake nonprofit to obtain federal funding by falsely claiming to provide meals to children across Minnesota. Both men agreed to forfeit over $1.5 million in bank accounts and several properties to the federal government, with sentencing to be scheduled later.

Two Minnesota brothers, Abdulkadir Nur Salah and Abdi Nur Salah, pleaded guilty to federal wire fraud charges in connection with the Feeding Our Future scandal, a $250 million scheme involving fraudulent claims under the Federal Child Nutrition Program. The brothers, who operated Safari Restaurant and a fraudulent nonprofit, received over $16 million in false reimbursements and must forfeit more than $1.5 million in bank accounts and several properties to the federal government.

Scam attempts in Minnesota and globally are escalating, with over $1.03 trillion lost to scammers in 2024, increasingly aided by artificial intelligence that generates convincing phishing emails, fake images, and cloned voices. High-risk scams include imposter schemes (grandparent and romance scams with median losses of $800), government imposter scams ($14,000+ median loss), cryptocurrency scams, employment scams, and task scams (which increased from 5,000 reports in 2023 to 20,000 in the first half of 2024). Scammers exploit recent disasters and events while using AI to intensify existing frau

Russell Rahm, leader of a telemarketing scheme spanning two decades (2000-2020), was sentenced to 10 years in prison for defrauding 183,000 elderly and vulnerable victims of approximately $335 million through fake magazine subscription sales. The conspiracy involved 61 defendants across the U.S. and Canada who used fraudulent scripts and lead lists to trick victims into unwanted subscriptions, with some victims charged up to $1,000 monthly by multiple phony companies simultaneously; Rahm was ordered to pay full restitution.

A Minnesota man warned of a lottery scam targeting elderly residents, in which callers claiming to represent a prize giveaway repeatedly contacted him over four days, offering $2.5 million and a car in exchange for purchasing a pre-paid debit card. The scammer used a Jamaican area code (867) and did not request credit card information directly, instead asking the victim to buy Green Dot cards at local retailers. The victim did not fall for the scheme and urged others—particularly seniors—to remain vigilant and report such incidents to the Federal Trade Commission.

An unlicensed caregiver at Madonna Meadows of Rochester, Minnesota allegedly used a resident's debit card to order over $500 in unauthorized food deliveries and attempted to forge a check, which was caught when the bank noticed a signature mismatch. The caregiver fled the facility and abandoned her driver's license at the bank before police could be notified; the facility confirmed the employee no longer works there and stated they cooperated with investigations and conduct background checks on all staff.