San Jose Widow Consults ChatGPT Too Late After Falling Victim to $1 Million Crypto Romance Scam

San Jose Widow’s Search For Companionship Turns Into A $1 Million Crypto Nightmare

Margaret Loke thought she had found someone to share her quiet retirement years with.

The daily messages, the gentle check-ins and the warm affection felt genuine — until the man she called “love” pushed her into a web of fake crypto investments that drained almost every dollar she had.

By the time she turned to ChatGPT for clarity, most of her money was already gone.

A Carefully Built Romance That Hid A Scam

Loke, a widow in her 70s living in San Jose, California, was introduced to a man calling himself Ed through Facebook last May.

Their chats soon moved to WhatsApp, where he messaged her every morning.

She told ABC7 News,

“He was really nice to me, greeted me every morning… he sends me every day the message ‘good morning.”

“He says he likes me.”

They bonded over food, their daily routines and their shared Chinese heritage.

The pair began exchanging affectionate messages.

In one message, Loke texted him,

“When I think of someone special, it’s you that comes to my mind.”

Ed replied:

“The feelings between us are real and I miss you every day… I hope our love can last forever.”

Despite the intimacy, he avoided meeting in person and urged her to keep the relationship secret.

Soon, he shifted the conversation to money — specifically crypto investment.

How The Money Vanished

Loke admitted she had no prior trading experience.

Ed offered to guide her, showing her a trading platform that appeared to turn $15,000 into $24,000 within seconds — classic behaviour in “pig-butchering” scams, which rely on fabricated profits to lure victims into sending more funds.

Encouraged, she began a series of escalating transfers.

She wired $120,000 from her IRA, then another $490,000.

Each time, the app displayed impressive gains, reinforcing Ed’s push to “invest more” to reach his promised $5 million target.

She said,

“I’m a simple person, I don’t know how to trade so I follow him, whatever he tell me.”

When she had exhausted her IRA, Ed insisted she borrow money.

Under pressure, she took out a $300,000 second mortgage and sent that as well.

Her account balance seemed to show roughly $2.4 million.

But when she tried to withdraw, everything “froze.”

Ed demanded an additional $1 million to “release” her funds.

His tone changed, and he began threatening legal action.

In a chilling voicemail, he warned:

“I don’t want we be enemies… my lawyers contact with you.”

The Moment ChatGPT Confirmed Her Worst Fears

Unsure what to do, Loke turned to ChatGPT for advice.

She explained the situation, hoping for reassurance.

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Instead, the AI told her the setup matched known scam patterns and urged her to contact police.

She said,

“ChatGPT told me no, this is a scam, you better go to police station.”

Only then did she confront Ed and cut ties.

Investigators later confirmed she had been wiring money to a bank in Malaysia, where scammers withdrew the funds.

By that point, nearly $1 million was gone.

A Growing Industry Built On Emotional Manipulation

Pig-butchering scams have expanded sharply worldwide.

Fraudsters often operate from compounds in Southeast Asia, where large groups target international victims.

According to the FBI’s Internet Crime Complaint Center, online scams targeting American seniors cost an estimated $9.3 billion in 2024.

In September, the US Treasury sanctioned 19 entities in Burma and Cambodia believed to be involved in these operations.

Officials say the criminal networks not only steal money, but also rely on forced labour to run the schemes.

The FTC and SEC warn that romantic relationships turning into unsolicited crypto “coaching” are a key red flag.

Once funds leave US banking channels, regulators say recovery is extremely rare.

Life After The Scam

At home, Loke’s kitchen has become a maze of bank records and transfer slips — the financial remnants of a relationship that never existed.

She now faces a large tax bill for draining her IRA, and the burden of a second mortgage she may struggle to repay.

She said tearfully,

“I try to save the house, that’s the only thing I have. All my money is gone to the scam.”

Even with her deep regret, she hopes her story prevents others from falling into the same trap.

Speaking candidly from her kitchen, she said,

“I hardly cook because I’m alone.”

Reflecting on what had happened, she was deeply distraught.

“Why am I so stupid. I let him scam me! I was really, really depressed.”

Authorities continue urging anyone who suspects crypto fraud to stop sending money immediately and file a report at the FBI’s IC3 website — and, critically, not to alert the scammer.