Bitcoin ATM Scammers 💳

Bitcoin ATM Scammers

The FBI has issued a warning against the rising number of crypto scams emerging in the US.

Criminals have been targeting bitcoin ATMs, using them to facilitate drug trafficking, money laundering, and other types of fraud, CNBC reported, quoting law enforcement.

“The FBI has seen an increase in scammers directing victims to use physical cryptocurrency ATMs and digital QR codes to complete payment transactions,” the bureau said in a public service announcement. QR codes can be used at the crypto ATMs to direct payments to intended recipients.

Here’s how this particular fraud works, according to the FBI: “The scammers provide a QR code associated with the scammer’s cryptocurrency wallet for the victim to use during the transaction. The scammer then directs the victim to a physical cryptocurrency ATM to insert their money, purchase cryptocurrency, and use the provided QR code to auto-populate the recipient address.”

Crypto owners have also been advised to avoid using ATMs that advertise “anonymity” and allow transactions only based on phone numbers and email IDs.

“Many machines permit near anonymity on purchases of up to $900 worth of cryptocurrency by allowing users to provide only a cell phone number,” the commission’s report said. “Some require no identifying information at all.”

That’s alarming to law enforcement officials, who told CNBC that the ATMs are being used for a wide range of criminal activity. Drug traffickers, money launderers, and people trying to get unwitting victims to send money to a crypto wallet have employed the machines. A 2020 DEA report warned the ATMs can “aid in the movement of illicit bulk currency.”

Bitcoin ATMs are now becoming a thing in the US as well as other nations with an increase in adoption.

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.

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