The use of crypto ATMs as a common means of payment for crypto scams
New York City: According to the FBI, in addition to conventional payment methods like wire transfers and prepaid cards, crypto ATMs are also increasingly being used by fraudsters posing as cryptocurrency investors.
The Miami Field Office of the Federal Bureau of Investigation (FBI) in the United States has issued a warning that cryptocurrency ATMs are becoming a common way for con artists to get money from their victims.
Information regarding “pig butchering scams,” in which con artists act as long-lost acquaintances or possible love partners to steal money from victims, was made public on October 3.
Scammers “fatten up” their victims by seeming to be genuinely interested in them in order to gain their confidence before introducing investment conversations over time.
The FBI issued a public service broadcast in collaboration with the Internet Crime Complaint Center warning that victims of these crypto scams that involve killing pigs often have little hope of recovering their money.
The FBI, however, stated that they’ve seen fraudsters are increasingly instructing their victims to send money through cryptocurrency ATMs, in addition to more conventional means like wire transfers and prepaid cards.
In “pig butchering” scams, victims are “coached through an investing procedure” and “encouraged to make continuous contributions by the fraudsters,” according to the FBI.
Scammers who act as public authorities, law enforcement personnel, or representatives of local utility companies have long used cryptocurrency ATMs to trick victims into sending money under the pretense of paying off debts or overdue taxes in order to avoid additional fines.
According to information from Coin ATM Radar, there are close to 33,500 cryptocurrency ATMs in the United States, which makes up 87.4% of the world’s distribution.
In January, the U.S. Federal Trade Commission issued a warning on cryptocurrency ATM frauds, saying that the con artists sometimes masquerade as possible love partners.
The FBI advised users to be cautious of domain names posing as legal exchanges and misspelled URLs, “check the veracity of any investment opportunity” promoted by these kinds of persons, and avoid downloading any applications if the legitimacy could not be confirmed.
Numerous times, law enforcement organizations in the United States have issued alerts concerning romance scams and the slaughtering of pigs. Although it can be thought that victims lack investment or technical knowledge, this isn’t always the case.
In June, it was revealed that a wave of pig butchering scams had been defrauding tech-savvy Silicon Valley executives in San Francisco, with many victims losing more than $1 million each.