$110 million. That’s how much money bitcoin ATM scammers have stolen in just three years. Even more disturbing is that these scammers have stolen more than $65 million in the first six months of 2024 alone.
Bitcoin ATM scammers prey on people who may be unfamiliar with how bitcoin works. Take a moment to learn about bitcoin ATM scams and how you can protect yourself from this increasingly common scam.
What Is a Bitcoin ATM?
You may have spotted a bitcoin ATM during your recent trip to the grocery store or gas station. Think of bitcoin ATMs as a cross between a conventional ATM and a currency exchange machine. You put physical cash into the bitcoin ATM, and it exchanges that money for bitcoin. You then deposit that bitcoin into a digital wallet that you provide to the machine via a QR code.
How Do Bitcoin ATM Scams Work?
In a bitcoin ATM scam, scammers impersonate the government, claiming that your money is unsafe and that you need to convert it to bitcoin to protect it. They may falsely claim that you are involved in an Amazon scam or somehow involved in drug smuggling or money laundering and that you need to move your money into bitcoin to keep it safe.
Remember: your money at Lake Region Bank and any other FDIC-insured bank is safe.
If a victim falls for this scam, the scammers provide them with a QR code for what they claim is a government-issued bitcoin account (something the government will never create for you) and send them to a specific bitcoin ATM. They instruct the victim to withdraw money from their bank, retirements, or other accounts and deposit it in the bitcoin ATM in exchange for bitcoin. The last step in the transaction is to use the QR code the scammers provided to move the money into a digital wallet.
However, that digital wallet is NOT a government-created account for the victim. It is the scammer’s account. This is how the scammers make their money in the scam—they convince unsuspecting people to withdraw their money from the bank or other financial institution, convert it to bitcoin, and deposit the bitcoin into the scammer’s digital wallet.
How Can I Avoid a Bitcoin ATM Scam?
The easiest way to avoid a bitcoin ATM scam is to know the facts. Here are things to know if you suspect a scam.
- The government, a legitimate financial institution, or a real business (like Amazon) will NEVER say you need to use bitcoin to fix a problem or protect your money. Only scammers do that.
- Beware of unexpected calls or messages urging you to move or withdraw money. These messages are almost always scams.
- Never click a link or call a number in a message you think is suspicious, even if it looks legitimate. Instead, use a number or website you know and trust, such as those on your statements, to get in touch with your bank. You can contact Lake Region Bank by visiting www.lakeregion.com or calling us at 320-235-5900.
- Report the scam to the federal government at ReportFraud.ftc.gov. Reporting the scam will help the government find and shut down the scammers.
Bitcoin ATM scams are on the rise. Protect yourself and your money and beware that scammers may try to convince you to move your money into bitcoin, and if they do, don’t fall for it. Reach out to Lake Region Bank today for more fraud prevention support.
