Crypto ATM Scam Alert: How To Stop Fraudsters From Stealing Your Money
Crypto ATMs, often located in convenience stores and petrol stations, allow users to buy digital assets like Bitcoin using cash or debit cards. However, scammers are now exploiting these machines to trick victims into transferring money straight into their crypto wallets.
How the Scam Works
Fraudsters usually start by contacting their targets through unsolicited phone calls, texts, or emails. They often pose as representatives from legitimate companies, government agencies, romantic interests, or even distant relatives. Their primary tactic is creating panic. They claim there’s an emergency perhaps a frozen bank account, tax issue, or a relative in trouble and insist that urgent payment is required.
The victim is then instructed to visit a nearby crypto ATM and deposit money. Scammers usually remain on the phone, giving step-by-step instructions throughout the transaction. While most crypto ATMs display scam warnings and note that transactions are irreversible, many victims proceed out of fear or confusion.
Under the Digital Financial Assets Law (DFAL), kiosk operators are not allowed to accept more than $1,000 per person per day. Any operator allowing more violates state law.
In many cases, scammers send victims a QR code to scan at the crypto ATM. Once scanned, the purchased crypto goes directly into the scammer’s wallet, making the transaction instant, irreversible, and nearly untraceable.
Red Flags to Watch Out For
How to Protect Yourself
Always verify claims through official contact channels before sending money. Pause and think before acting scammers thrive on urgency. If in doubt, speak to someone you trust. You can also report any suspected scam to the Department of Financial Protection and Innovation (DFPI).
Remember: No legitimate organisation will ever ask you to deposit cash into a crypto ATM. If someone does, it’s definitely a scam. Stay cautious, stay informed, and spread awareness especially among older adults who are frequent targets.
For verified information and resources, visit dfpi.ca.gov/consumers/crypto/.
How the Scam Works
Fraudsters usually start by contacting their targets through unsolicited phone calls, texts, or emails. They often pose as representatives from legitimate companies, government agencies, romantic interests, or even distant relatives. Their primary tactic is creating panic. They claim there’s an emergency perhaps a frozen bank account, tax issue, or a relative in trouble and insist that urgent payment is required.
The victim is then instructed to visit a nearby crypto ATM and deposit money. Scammers usually remain on the phone, giving step-by-step instructions throughout the transaction. While most crypto ATMs display scam warnings and note that transactions are irreversible, many victims proceed out of fear or confusion.
Under the Digital Financial Assets Law (DFAL), kiosk operators are not allowed to accept more than $1,000 per person per day. Any operator allowing more violates state law.
In many cases, scammers send victims a QR code to scan at the crypto ATM. Once scanned, the purchased crypto goes directly into the scammer’s wallet, making the transaction instant, irreversible, and nearly untraceable.
Red Flags to Watch Out For
- Unexpected messages claiming urgent account or family emergencies.
- Requests to withdraw cash and deposit it at a crypto ATM.
- Anyone claiming a crypto ATM will “secure” or “protect” your funds.
How to Protect Yourself
Always verify claims through official contact channels before sending money. Pause and think before acting scammers thrive on urgency. If in doubt, speak to someone you trust. You can also report any suspected scam to the Department of Financial Protection and Innovation (DFPI).
Remember: No legitimate organisation will ever ask you to deposit cash into a crypto ATM. If someone does, it’s definitely a scam. Stay cautious, stay informed, and spread awareness especially among older adults who are frequent targets.
For verified information and resources, visit dfpi.ca.gov/consumers/crypto/.
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