Scammers are increasingly using crypto ATMs and kiosks in their operations

Scammers are increasingly using crypto ATMs and kiosks in their fraudulent schemes, abusing these digital currency exchanges to scam unsuspecting victims.

In a recent case, a Troy, Michigan woman was sent to a Bitcoin kiosk at a local gas station after falling victim to a multi-faceted scam.

The scam started with an email requesting a refund of $3,966 that had been accidentally overpaid.

Victims are instructed to use crypto ATMs

The woman, who believed she owed money, was instructed to withdraw cash and deposit it at a Bitcoin ATM.

Despite complying with the scammer’s demands, she was later told she had not received the full amount and still owed $1,000.

To settle this fictitious debt, she was instructed to purchase two $500 gift cards and read the serial numbers to the scammers over the phone. In total, the woman lost $4,966.

Once the money is deposited into a cryptocurrency ATM or kiosk, it is instantly converted into digital currency. This allows the scammer to transfer the money to other accounts, often overseas.

According to the FBI’s Internet Crime Complaint Center, more than 2,000 complaints about the use of cryptocurrency ATMs and kiosks by individuals over the age of 60 were filed in 2023.

The decentralized nature of cryptocurrencies makes it difficult for law enforcement to trace stolen funds, as the digital wallet in which the funds are received can be located anywhere in the world.

In addition to cryptocurrency fraud, the FBI has also reported an increase in what it calls “phantom hacker” fraud, which came to light in 2023.

This type of scam involves sending couriers to collect money or precious metals from victims. It is part of a wider call centre scam, often involving technical support or government identity impersonation.

Earlier this year, federal agencies including the FBI and the U.S. Department of Justice cracked down on nearly 3,000 “money couriers” — individuals who collect and transfer money on behalf of international fraud organizations.

These criminal networks even go so far as to recruit students to collect payments from victims and open fraudulent bank accounts to funnel the illegal proceeds.

Crypto romance scams are becoming more common

US citizens are also being plagued by crypto romances, leading to significant financial losses.

Recently, Shreya Datta, a 37-year-old tech professional from Philadelphia, fell victim to a crypto romance scam and was left financially devastated, losing a whopping $450,000.

Erin West, a deputy district attorney in Santa Clara, California, reported that she receives an average of five to six emails a day from individuals who have been victims of hog slaughter.

“We receive 5-6 emails a day from people who have been victims of pig slaughter. The most recent victim lost $5 million dollars and that is not even the largest amount of money a victim has lost to this scam.”

What makes the problem even worse is that the stolen money is channeled to international criminal organizations in Myanmar and Cambodia. These people are used as slaves to slaughter pigs.

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