I just came across this article from Forbes. It's another great effort from John Wasik whom I've discussed before. You can find the entire article here.
I recently received a series of emails from a reader describing one
of the most convoluted and troubling stories I’ve heard in some time.
“My 82-year-old mother bought [Iraqi] Dinar about 6 years ago. A
friend of hers told her that their entire church had invested in the
Dinar and it was going to make everyone a millionaire very soon. She
didn’t buy a lot of it, but spent about $6,000. She even got me to put
in $1,000. I have it still sitting in my little safe. Its fun to look
at but I have set my expectations fairly low on this currency ever
making me a millionaire. After the stock market took most of my
investment in 2008, I decided hard work tended to yield better results
with my investments!
A few days ago my brother contacted my mother and told her that
he had gotten an inside scoop regarding exchanging the Dinar. He said
that he was told that the US government was currently converting the
dinar at an exchange rate of $8. I questioned this as it just didn’t
seem to make sense. I mean isn’t the government kind of broke right
now? He is not sure either, but says that he is being told this is a
definite fact. At first she was told that she had to fly to Reno,
Nevada but that has since changed and now it is to a military base in Washington
DC? So close to the capital! When I google Dinar Scams – Reno pops
up so I am inclined to think that this is just a new location for an old
I have told both my brother and my mother I think this is a scam.
That they will take her passport and her identity. They will give her
back fake Dinar that will look like the real one. They will then
re-sell her Dinar and make a few thousand. But the real bonus is having
her identity as well!”
There are a number of fuzzy details that make this set-up even
more bizarre, but it smelled fishier than a Maine trawler, so I told her
to call law enforcement authorities. She then called the FBI and
enrolled her mother in an identity protection service.
“When I spoke to the FBI, they were unaware of the Iraqi Dinar
scam (it was kind of like calling in to some local hotline and not
terribly helpful). But the guy I talked to said that typically after
the scammers have all the identity information, they fade out of the
picture as far as making good on their promise. Right now, the good news
is that she is not going to travel to DC as there has been no contract
presented for the Dinar purchase. And so far, no movement on her
identity. I’m just holding my breath….”