Scammers are increasingly incorporating crypto ATMs and kiosks into their fraudulent schemes, exploiting these digital currency exchange points to swindle unsuspecting victims.
In a recent case, a woman from Troy, Michigan, was directed to a Bitcoin kiosk at a local gas station after falling victim to a multifaceted scam.
The scam began with an email that asked for a refund for an alleged accidental overpayment of $3,966.
Victims Instructed to Use Crypto ATMs
The woman, under the impression that she owed money, was instructed to withdraw cash and deposit it into a Bitcoin ATM.
Despite complying with the scammer’s demands, she was later told that not all the money was received and that she still owed $1,000.
To settle this fabricated debt, she was instructed to purchase two $500 gift cards and read the serial numbers to the scammers over the phone. In total, the woman lost $4,966.
Once the cash is deposited into a cryptocurrency ATM or kiosk, it is immediately converted into digital currency, allowing the scammer to transfer the funds to other accounts, often located overseas.
According to the FBI’s Internet Crime Complaint Center, over 2,000 complaints involving the use of cryptocurrency ATMs and kiosks were filed in 2023 by individuals over the age of 60.
The decentralized nature of cryptocurrency makes it challenging for law enforcement to trace the stolen funds, as the digital wallet receiving the money can be located anywhere in the world.
In addition to cryptocurrency schemes, the FBI has reported a rise in what they term the “phantom hacker” scam, which surfaced in 2023.
In these scams, couriers are dispatched to collect cash or precious metals from victims as part of a broader call center scam, often involving tech support or government impersonation.
Earlier this year, federal agencies, including the FBI and the U.S. Department of Justice, cracked down on nearly 3,000 “money mules” – individuals who collect and transfer money on behalf of international fraud rings.
These crime networks have even gone so far as to recruit college students to collect payments from victims and open fraudulent bank accounts to funnel the illicit proceeds.
Crypto Romance Scams Become Prevalent
Crypto romance scams have also been plaguing US citizens, resulting in significant financial losses.
Just recently, Shreya Datta, a 37-year-old tech professional from Philadelphia, fell victim to a cryptocurrency romance scam that left her financially ruined with losses mounting to $450,000.
As reported, Erin West, Deputy District Attorney in Santa Clara, California, has revealed that she receives an average of 5-6 emails daily from individuals who have fallen prey to pig butchering.
“We are receiving 5-6 emails a day from people who are victims of pig butchering. The most recent victim lost $5 million dollars and that’s not even the biggest amount one victim has lost to this scam.”
Compounding the issue, the stolen funds are funneled overseas to transnational criminal organizations in Myanmar and Cambodia, using trafficked individuals as virtual slaves to carry out the pig butchering scams.
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