Everything You Need to Know About Cryptocurrency ATM Scams
Beware of Cryptocurrency ATM Scams! Scammers pose as bank reps, urging cash deposits into crypto ATMs to “protect your funds.” Learn how to spot and avoid this trap.
Cryptocurrency ATMs, also known as "Bitcoin ATMs," are becoming more common in places like grocery stores, gas stations, and malls. These machines look and work like regular bank ATMs, but they allow you to buy and transfer cryptocurrencies like Bitcoin, Ether, and Tether to anyone, anywhere instantly.
What is a Cryptocurrency ATM Scam?
Scammers are always looking for new ways to steal your money. While in the past they might ask you to send money through a wire transfer, gift card, or digital payment app, the latest scam involves cryptocurrency ATMs. Here's how it works:
A scammer contacts you and asks you to withdraw money from your accounts to “protect your money”. Usually, they will say that they are an employee from your credit union calling to tell you that your accounts have been compromised.
Next, they’ll tell you to visit a cryptocurrency ATM, typically a specific location, and deposit your real cash. Once your money is deposited, it will convert it into cryptocurrency.
Then, they give you a QR code saying that you need to scan it at the ATM. Once you scan this code, your money is sent immediately to the scammer's wallet, and is gone forever.
What makes this scam different than others?
As mentioned earlier, scammers typically will try to convince you to wire or send money from your bank account to their bank account somewhere else. When you deposit money into a traditional ATM, it goes into your credit union account that is protected by the NCUA. When your money goes into a known account, there are more protections in place that can help you try to get your money back if you are scammed.
With a cryptocurrency ATM, the money goes into an anonymous digital wallet controlled by the scammer. There are also no government regulations or insurance for consumers on cryptocurrency, making it almost impossible to get your money back.
How to Protect Yourself
Here are some tips to look out for when it comes to Cryptocurrency ATM Scams:
Never deposit cash into a cryptocurrency ATM in exchange for a QR code.
Know that FAIRWINDS or your credit union will never call you asking to withdraw cash in order to protect your accounts. They also will never ask you to transfer your money to a crypto ATM.
If someone claiming to be from your financial institution calls you and you’re not sure it’s really them, hang up. Scammers could be calling you from a spoofed phone number that appears to be from your credit union. Call the official number you know to be correct. The FAIRWINDS Member Support numbers are (407) 277-5045 and (800) 443-6887.
Stay calm. These scammers will try to convince you that your accounts are compromised, and that you need to act fast to protect your money. Taking the time to think twice about what someone is telling you over the phone can help you protect your personal and financial information.
Remember to always trust your instincts and if you think something isn’t right, it probably isn’t. By following these tips, you can know what to look out for when it comes to Cryptocurrency ATM Scams. Visit our Fraud Center for more advice on recent scams and how you can keep your personal and financial information safe.