Consumer Alert: Beware of Bitcoin ATM Scams

Friday, July 12, 2024

Our office has received complaints from people who have reported being scammed via Bitcoin ATMs. Bitcoin ATMs are physical kiosks that offer to exchange cash for cryptocurrency. Cryptocurrency is constantly evolving and extremely difficult to track, making it a great marketplace for scammers. People may use Bitcoin ATMs for legitimate reasons, but scammers can use them to try to steal your hard-earned money. Once someone converts or sends money via cryptocurrency, it is difficult for law enforcement to recover the funds.

Follow our tips to avoid being scammed when using Bitcoin ATMs:

• Read carefully. You may receive unwanted messages requesting cryptocurrency payments. Think twice before sending money via gift cards, wire transfers or cryptocurrency payments – they are almost always scams.
• Beware of scammers who only want to woo lovers. Some people will try to form friendships or romantic relationships with their victims online through Facebook or LinkedIn. Once a trusting relationship is established, the scammer will ask for money, often instructing the victim to use Bitcoin ATMs or other cryptocurrency outlets. If an online love interest asks you for money, especially in cryptocurrency, it is likely a scam.
• Be aware of the people you are working with. Some scammers pretend to be knowledgeable professionals in an attempt to deceive new investors. Make sure you can confirm the identity of your expert and check their reputation. If you are unsure about the credibility of a company, call our office before closing the deal.
• Beware of get-rich-quick guarantees. Sometimes bad actors lure people by promising them quick profits from their cryptocurrency investment. If the deal seems too good to be true, it probably is.
• Beware of scare tactics. Anyone who threatens you or a loved one if you don’t send money is a scammer. Don’t let these bad actors scare you into making a bad deal.
• Beware of debt collection scams. If you are a victim of a cryptocurrency scam, beware of sneaky companies that try to get you even more. These recovery websites promise to track down your lost funds for a fee, but they never do. Remember, these sites have no authority to recover your money.
• Relationship. If you have been a victim of a scam while using Bitcoin ATMs, contact your local law enforcement immediately. You may also file complaints with the North Carolina Secretary of State or our office’s Consumer Affairs Division at www.ncdoj.gov/complaint.

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