Why oh why people are you falling for this scam? First off, it you get a call, a text, and email, or any message from someone you don’t know (and in some cases, someone you do know) asking you to make any sort of payment or deposit using Bitcoin or other form of cryptocurrency, run for the hills. Scammers love cryptocurrency because these digital funds don’t have the same legal protections as other forms of currency and usually can’t be reversed. Plus, it’s more difficult to trace these transactions as this industry has few regulations in place with regards to consumer protection. Nowadays, to make life easier for scammers, businesses such as convenience stores have begun installing Bitcoin ATMs, which brings us to one of the more popular Bitcoin ATM scams.
A Bitcoin ATM scam is a type of fraud where scammers trick individuals into using Bitcoin ATMs (automated teller machines that allow you to buy or sell Bitcoin and other cryptocurrencies) to transfer cryptocurrency, usually Bitcoin, to the scammer’s wallet. These scams typically involve fake promises or threats that pressure the victim into sending or depositing money without understanding the full risks.
Here’s How These Cryptocurrency ATM Scams Usually Work
Scammers impersonating government authorities (or tech support agents from well-known companies the victim may have accounts with) will often contact victims by phone, email or text, telling them that there is suspicious activity on their account and they need to make an immediate deposit using a Bitcoin ATM or ‘BTM’ to safeguard their funds or risk losing everything. The threat or fraudulent warning may also come in the form of a pop up warning on your computer.
According to the FTC, the scammers inform the victims that depositing money into a Bitcoin ATM will protect their money, and may refer to the BTMs as ‘safety lockers’. The victim is instructed to withdraw money from their regular bank and then head over to a designated BTM and scan a QR Code (conveniently provided by the scammer), which then deposits the victim’s cash into the scammer’s wallet address or account. After the transaction, the scammer disappears, and the victim is left with no recourse.
Tips to Help You Avoid Becoming the Victim of a Bitcoin ATM Scam
Using common sense is the best way to avoid BTM scams. Always verify the legitimacy of anyone asking you to do anything via cryptocurrency. If you’re asked to deposit your money into a BTM, or make a payment through a Bitcoin ATM, always double-check the legitimacy of the request. Government agencies, for example, will never demand immediate payment in Bitcoin or through an ATM.
Be skeptical of high-pressure tactics: Scammers often create a sense of urgency or attempt to instill fear to make you act quickly. If someone is pushing you to send Bitcoin or demanding quick action, slow down and assess the situation.
Don’t trust unsolicited communication: If you receive unexpected calls, messages, or emails from supposed tech support agents, government officials, or even people you’ve just met online, do not provide any personal or financial information without verifying the claim.
Understand the limitations of Bitcoin: Bitcoin transactions are irreversible, which means once you send cryptocurrency to a wallet, there’s no way to get it back. Be very careful when using Bitcoin ATMs or sending funds.
Use reputable Bitcoin ATMs: If you must use a Bitcoin ATM, make sure it’s from a legitimate and trusted source. Many scams happen with poorly monitored or privately owned ATMs. Always check for reviews and ensure the ATM is registered with authorities.
