Most of us use ATMs pretty often to withdraw cash. But Bitcoin ATMs (or BTMs) are a different beast. Increasingly located in convenience or grocery stores, gas stations, and other places, they’re a way to buy or send cryptocurrency. Only scammers are now using BTMs to steal your money. A new FTC Data Spotlight explains how people are losing millions to fraud at BTMs — and how to protect yourself and the people you care about.
Many of these scams start with a call or message about something supposedly wrong: they might say there’s suspicious activity on your Amazon account, for example, or unauthorized charges on your bank account. (Untrue.) The caller will say your money is at risk, or even that you’re somehow linked to money laundering or drug smuggling, but they can help. (Also false.) They tell you to withdraw cash from your bank, investment, or retirement accounts and deposit it into a specific BTM. This, they say, will protect your money or fix the alleged problem. But it’s all a lie. Once you deposit the cash, it goes straight into the scammer’s wallet.
To avoid this scam:
- Don’t believe anyone who says you need to use a Bitcoin ATM to protect your money or fix a problem. Real businesses and government agencies will never do that — anyone who does is a scammer.
- Never withdraw cash in response to an unexpected call or message. Only scammers will tell you to do that.
- Verify the story. If you think there’s a real problem with one of your accounts, use a phone number, website, or app you know is real to contact your bank, investment, or retirement company. Don’t use contact information in the unexpected call or message you got. That will only take you back to the scammer.
- Report the scam. Go to ReportFraud.ftc.gov.
- Check out How To Avoid Imposter Scams for more advice.
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