Bitcoin ATM Scams

Introduction 

Bad actors will stop at nothing to steal money when they can. If an opportunity presents itself, they will pounce without question. However, since organizations are usually aware of these tactics, a scammer will try to take the path of least resistance. This usually means trying to get paid quickly through the easiest methods available. 

For a long time, gift cards were the answer for this, but a new option has become available to these bad actors: bitcoin ATMs. The gift card option has always been a good one for scammers, considering all the person has to do is buy them and give the scammers the numbers on the back. However, with the rise of bitcoin ATMs, it’s only a matter of scanning a QR code. 

What is bitcoin? 

Bitcoin is a cryptocurrency, or digital currency, that resides on a digital ledger, or a blockchain. Computers can solve a series of mathematical equations to generate these cryptocurrencies. Bitcoin has become very valuable over the past two decades since its founding in 2008 but fluctuates in value on many occasions. 

Because of this value, however, bad actors have made it a target. It is easy for a person to connect to one of these digital wallets to bitcoin in. A QR code is usually used to connect to these wallets, where the bitcoin ATMs accepts money to put into the digital wallet. These ATMs aren’t connected to banks, so the safeguards that people have with these financial institutions are not extended to the ATMs. 

Why Bitcoin ATMs? 

Since these ATMs aren’t connected to banks or credit unions, it is a perfect target for bad actors. This is even true beyond gift cards and takes out the middleman that may warn the victim of a potential scam. Usually, when purchasing gift cards, someone may ask a question or two to determine if someone is being scammed. With a bitcoin ATM, that is pretty much removed. 

Common Scams 

Fortunately, bad actors have always used certain scam scripts that rarely change across the call centers that they use. They are easy to spot if you know what to look for. All of these are common types of social engineering, so if you’re aware, you can avoid it. 

The Warranty 

It has become a joke across the Internet, but the “car’s extended warranty” is still one of the most-used scams in the world. Because these warranties are on a company-basis, it is easy to pose as that company to try to get something out of a victim. If you want information on your warranty, you should reach out to the company you purchased from. 

The Account Error 

It’s highly likely that you have an account with Amazon or some other popular shopping website service. Even if you don’t, it can be somewhat worrying to get an email saying that someone bought something under your name. Scammers are hoping that you will fall for it and call the number or click the link in the email, leading you to their scam. 

The Auto-Renewal 

Auto-renewal memberships and services are commonplace in many companies. Not many people like them, but that doesn’t keep bad actors from sending emails to you, saying that your account was charged for hundreds of dollars. Like the previous ones, the scammers will hope you call into their fake number so they can lead you down a path of giving them money. 

The Court Order 

A common phone scam that has popped up recently is the court order. You will get a call saying that you are being sued or that you have some outstanding balance that is being taken to court. You will never receive a summons to court through phone—this is handled specifically through snail mail or the police. 

On the Phone 

If you ever call one of these scam numbers, it can be dangerous. They will attempt to be nice through the call, acting like a real customer service specialist or some other helpful employee, leading you through an explanation of what needs to be done. This usually leads to the victim being told they have to pay them in some manner. 

Originally, this was done primarily through gift cards. Now, they’ve resorted to bitcoin ATMs that have much less protection. All the victim has to do is to get a QR code that links to the scammers wallet, approach a bitcoin ATM, and deposit money after scanning the QR code. If it gets this far, it is highly unlikely that the money can be recovered, so never go to a bitcoin ATM if instructed by a phone call. 

Conclusion 

Cryptocurrency is a digital currency that has increased in value over the past fifteen years. Because of its digital form, it is easy to exchange across the Internet and various websites, but it has also extended to the physical world in the form of ATMs. Bitcoin ATMs can be accessed through a QR code if it is connected to a digital wallet. 

Bad actors have taken a liking to these ATMs because they are easy to access and they aren’t connected to banks. A lot of the protections and safeguards that come with bank and credit union ATMs are not applied to most bitcoin ATMs. Once a victim puts in money and sends it to the digital wallet, it is nearly impossible to get back. Be sure to stay aware of any scams that might be around.