Today, we will tell you about Cryptocurrency ATMs. Cryptocurrency ATM frauds are on the rise as Colorado lawmakers consider regulation. Let’s get started:
Cryptocurrency ATM frauds are on the rise as Colorado lawmakers consider regulation
As the interest in cryptocurrency grows across the United States, the number of ATMS that facilitate transactions in cryptocurrency is increasing too.
With the convenience of ATMs in place, fraudsters have sprung up. They’ve taken millions of dollars out of unwary Coloradans using ATMs as well as the lack of security around these ATMs.
“I had no idea what bitcoin… to tell you the truth, what it is,” one man who requested not to be identified, told CBS Colorado.
But he did not let his inexperience prevent him from depositing $15,000 in an ATM that accepts Bitcoin.
These machines are quite easy to find. They convert money into cryptocurrency.
“I got a phone call at home on my cell and the person on the other end said they were with the El Paso County Sheriff’s (Office) and they had warrants out for my arrest because of me not showing up for grand jury,” the man said.
A text message came from a fake El Paso County Sheriff’s Office phone number, which included an image of the warrant bearing his signature on it. It also contained the list of all charges that he faced and the penalties for each. The scammers warned him that if the debt was not paid, it could be the possibility of jail time.
“I was scared, and frustrated because I didn’t remember anything about it. Very upset that something like that was happening to me. I couldn’t understand why,” the man declared.
The fake warrant contained the QR code of the Bitcoin wallet.
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“They said the way they could do it was there are a couple of bitcoin machines in Colorado Springs that are attached directly to the treasury department. They say they ‘Don’t advertise it but it’s a way that they can collect the money,'” said the official.
The victim, who is not known, took the cash from his account before driving to one of these machines where he deposited the money.
“It was just basically me standing there and they opened the account. I got to the screen and put the money in $100 at a time.”
Sgt. Ross Young runs the financial criminal unit of the Mesa County Sheriff’s Office in the western part of Colorado.
“A few clicks and that money can be in another country,” Young stated.
In the wake of a surge of bitcoin ATM frauds in the area They now have a team committed to investigating this kind of crime.
“One of the things we realized is that with these crypto ATMs being the medium upon which these scams are perpetrated, trying to get cooperation (and) trying to get information has been difficult,” He said.
In September in September, the Federal Trade Commission reported an increase of over 50% in losses attributed to ATM scams that use bitcoin. In the first six months of 2024, America’s losses were $65 million.
Young was able to turn to Colorado state senator. Janice Rich introduced legislation to regulate ATMS as well as require cooperation within Colorado.
“There’s been some instances where they haven’t had any information for like 8 months. By then, that money is gone,” Rich explained.
He added that the legislature is also focusing on ways to avoid this kind of loss from happening in the future.
“We do want to put a daily transaction limit on there. We do want to have some regulation on when that money can be returned,” Rich explained.
These are safeguards that could have prevented the loss of that victim CBS Colorado spoke with and other people.
“It’s a strain, I’m on fixed income, retired so it came out of savings and it’s lost,” the man said.
Responding to the increasing of Bitcoin ATM frauds The FTC gave ways to be safe from falling for scams:
Don’t click on any hyperlinks or respond immediately to messages, calls or pop-ups on your computer.
If you think the call is legitimate, call the agency or business however, you must search their contact number or their website for yourself. Do not use the number that the message or caller provided to you.
Slow down. Scammers are trying to make you feel rushed therefore, stop and look at the scam. Before doing anything else, speak to someone you are confident with.
Don’t withdraw money as a response to a call or text message.
Do not believe anyone who tells you to make use of a Bitcoin ATM, purchase gift cards or move money to safeguard it or solve a problem. Genuine businesses and government agencies are not going to do that anyone who requests is a fraudster.
Conclusion
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