FBI brought public attention to scams involving cryptocurrency ATMs

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The Federal Bureau of Investigation (FBI) has warned of an “increase in crooks” using crypto ATMs and Quick Response Codes (QRs) for fraudulent activity. The agency gave valuable advice on how individuals can protect themselves in such occasions.

Beware when using crypto ATMs

Quick response codes – machine-scannable images that can be instantly read using a smartphone camera – can be used at cryptocurrency ATMs to send payments to an intended recipient. However, it seems that bad actors have found a way to employ them in some projects as well.

In a recent warning issued by the FBI, the agency explained how fraudsters can trick people with such malicious operations:

“The FBI has seen an increase in the number of scammers asking victims to use physical cryptocurrency ATMs and digital QR codes to complete payment transactions.”

The Bureau informed that bad actors usually lure victims by pretending to be a familiar entity such as the government, a law firm, law enforcement, or a utility company.

Other tricks include romance schemes (forming an online relationship and a false sense of intimacy in victims) and lottery conspiracies (scammers tell people they’ve won a prize and insist that they ‘they pay non-existent lottery fees).

Yet the methods using cryptocurrency ATMs and QR codes are quite similar in each deception. Criminals direct the victim to a physical ATM machine where they put their money (often withdrawn from investment or retirement accounts). Later, the attracted person purchases digital assets and uses the necessary QR code to automatically fill in the recipient’s address.

Once the payment is made, the fraudsters automatically become the owners of the cryptocurrencies. In some cases, they even transfer the tokens to an account beyond the borders of the United States immediately after receiving them. Thus, the authorities find it very difficult to reveal the crimes.

What is the FBI’s advice?

First, people shouldn’t send payments to someone they’ve never seen, even if they think they’ve made a “real” relationship online. Additionally, one should never scan QR codes and send funds through crypto ATMs to such shady individuals.

In the event of receiving a call from a mysterious phone number, where a person identifies as someone familiar and requests cryptocurrency payments, people should be wary. Instead of sending the assets, they should contact local law enforcement officers.

Avoiding crypto ATMs that advertise anonymity and only require a phone number or email is also a must, according to the FBI. Most likely, these machines do not comply with US federal regulations and may facilitate money laundering.

Featured Image Courtesy of BusinessInsider

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