Better Business Bureau: How to avoid crypto ATM scams
Jalen Fong
YUMA, Ariz. (KYMA) – Bitcoin ATM machines or kiosks are popping up at more and more convenience stores and gas stations.
The ATMs are an easy way to buy and sell crypto, but scammers have found there’s also a way to take thousands from unsuspecting consumers.
The Federal Trade Commission says during the first half of 2024, the average loss people reported was $10,000.
Much of the money is taken through “imposter” scams. Scammers call and pretend to be a government official with a fake citation or something you owe.
They could pretend to be your bank with a security issue that requires you take money out of your account and deposit it in a new, clean account. Scammers could use the old “tech” scam and notify you that there’s a virus on your computer only they can solve, if you call them.
In most cases, they lead you to a nearby Bitcoin ATM, tell you to pay the fine or deposit the money there. That money ends up in the scammers account.
Bitcoin ATMs allow speedy, anonymous cash-to-crypto transactions that are irreversible and are very hard to trace. There have been few if any regulations to stop it.
States like Arizona and California are changing that.
Arizona now requires the ATMs to have warning signs. Daily deposits are capped at $2,000 for new users. If you’ve been scammed and report it within 30 days, you can get a refund. Check out the Arizona Attorney General’s crypto ATM/kiosk regulations HERE.
California requires warning signs and limits all daily deposits to $1000. Check all of the California Attorney General’s crypto ATM/kiosk regulations HERE.
If you’re told to withdraw cash and deposit it in one of these ATMs, it’s a scam. No legitimate person will ask you to pay a debt or fix a problem by putting money in these ATMs.
The Better Business Bureau (BBB) always advises never responding to texts, computer pop-ups or calls. If you’re told there’s a problem with an account, like your bank, only go into your account to check and communicate.
Also, don’t answer any calls that aren’t in your contacts. Important people will leave messages while scammers will not.
Check out all the latest scams and tell us what you’re seeing through the BBB Scam Tracker.