FBI warns of new cryptocurrency fraud tactics

The FBI has issued a PSA notice to the public about new crypto scam tactics that scammers are using with the help of crypto ATMs.

FBI warns of new crypto scam tactics

According to the FBI, scammers often convince gullible people to put cash in their crypto ATMs. The person was then asked to send the purchased amount to the scammer using the address stored in the QR code, CoinDesk said. Even if the real scam seems to be low budget, low tech, it is still interesting to know that these criminals may be improving their old methods. This time, however, with cryptocurrencies.

As the agency explains, scammers often contact their victims and somehow get them to send money, either on promises to be together soon or promises of higher returns, or sometimes by impersonating a real financial institution like a bank or utility . After convincing the potential victim, the scammer asks them to get cash (wherever it’s coming from, even if it means borrowing or withdrawing from their retirement fund) and go to an ATM that sells cryptocurrency and read it supported by QR codes. Once the victim goes there and scans the QR code that the scammer sent them, the machine is instructed to send any cryptocurrency purchased to the scammer’s address. And so, in a flash, the victim lost all his money, and the scammer managed to steal his hard-earned money.

In all respects, upgrading these scammers’ technology with a crypto ATM method has two parts: it’s not as cumbersome as sending a wire transfer, and ultimately, the scammers have crypto instead of fiat.

Of course, when you’re trying to fill out a bank transfer form, someone else may test you and give you different eyes to really understand what you are doing. In the meantime, using an ATM method doesn’t even give you the time to properly think about that you are about to send money to a complete stranger.

While the FBI and FTC have put together some good guidelines on how to avoid fraud, the truth is, it’s all up to you. If someone you don’t know asks you to send them money, don’t do it. Be it in cash or otherwise, just don’t.

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