FBI Warns About Rising Crypto ATM Scams: Important Safety Tips

The FBI warns of a rising trend in fraud targeting Crypto ATMs, with victims losing vast sums. Scammers deceive individuals into transferring funds via these machines under false pretences. Authorities advise against using crypto ATMs for others and recommend legitimate platforms for transactions to avoid risks.

Crypto ATMs are increasingly targeted by scammers, with the FBI indicating a significant rise in fraud cases leading to losses amounting to hundreds of millions of dollars. Typically located in convenience stores, these machines are exploited by both fraudsters and, in some cases, the owners of the ATMs, who financially benefit from these illicit transactions.

The common scam strategy involves the fraudster convincing the victim that their bank or social media accounts have been compromised. The scammer offers to resolve the issue, instructing the victim to withdraw funds and transfer them to a so-called ‘safe’ account, which ultimately leads to the victim unintentionally sending money directly to the scammer via the crypto ATM.

Marc Dann, managing partner of Dann Law, stated that their office receives frequent reports from victims of crypto ATM scams. He highlighted the importance of public awareness, emphasising that if anyone is solicited to deposit money into a crypto ATM, it likely involves criminal activity.

To mitigate the risk of falling victim to such scams, authorities recommend against purchasing crypto for others using ATMs. Instead, individuals should independently verify any suspicious claims by contacting their bank directly and report the incident to local law enforcement. For valid transactions, using established online platforms such as Coinbase is advised, as this eliminates reliance on potentially fraudulent crypto ATMs.