The crypto craze is huge and nearly everyone, from celebrities to the common man, is cashing in on it. Like cash ATMs, there are crypto ATMs set up at various places to facilitate transactions in minutes. You can buy and sell cryptos through these ATMs. To buy cryptos, you need to insert money into the ATM and a purchase is executed. For a sell order, the ATMs are just as quick to eject the cash amount.
Unfortunately, however, perpetrators are using fraudulent schemes to set up fake crypto ATMs, or to hack into legitimate ones, to steal the personal information and funds of unsuspecting individuals.
This post will tell you what Crypto ATM Scams are, how to stay safe, and what to do to report such a scam. Read on.
What is Crypto ATM Scam? How Does it Work?
Scammers have no legitimate jobs to fall back on. They live to trick people and rob them of their hard earnings. Crypto ATM scams have many variations but the main objective is to trick their targets into depositing their cryptocurrencies and personal information into the ATMs and stealing them for their own gain.
They begin by setting up fake ATMs in a public place (as if in a bid to reassure people that all’s genuine). Next, they advertise the ATM, but in reality, the ATM is not connected to any Exchange or wallet. No sooner you deposit the money into the ATM, the scammer will disappear with it, untraced.
Scammers also hack legitimate ATMs and change the withdrawal address to a wallet controlled by them. They even install malware. All of these are done to steal the cryptocurrencies and personal information (like credit card numbers and ID details) from their victims, and use this information in the future against them.
Phishing scams are also quite common in the crypto world. Scammers send their targets emails or texts claiming that their account is locked, which can be unlocked by visiting a certain website. They then spoof websites that look like legitimate Exchanges or wallets. The user is then tricked into entering their login credentials which the scammers use to access their real accounts and steal their funds.
Tips to Keep Yourself Scam-Proof
Crypto scams are next-level scams that are organized and executed by smart and technically-trained people. They believe in becoming rich quickly through crafty and fraudulent means. Sadly, they are successful in deceiving people many times, but we must remember that dishonesty has a heavy price to pay someday. Sooner or later, these perpetrators get booked under cyber law, and punitive measures are taken against them when caught. Until then, you should take steps to remain safe and scam-proof.
- Use only machines that are located at reputable places/areas. The ones inside a bank are the most dependable.
- Always cross-check the credentials of the company before using their ATMs.
- Mobile wallets are considered to be more secure than crypto ATMs. This is because they are usually protected by passwords or biometric authentication systems, and are less likely to be compromised. Moreover, users use their private keys to access funds.
- Beware of phishing scams — crypto or not. It is never wise to respond to messages or texts sent from unverified sources. Always double-check the URL of the website from where the email is sent, and never click on any links.
How to Report a Crypto ATM Scam
1) Report Scam to The Local Authorities — When you get scammed, waste no minute to report it to the local authorities like the police or the FBI (Federal Bureau of Investigation). They will take the matter into their hands, find investigative angles to close in on the culprits, and take appropriate action against them when they are nabbed.
Please note here that you must retain all documents, and records of transactions or communication you had with the scammers, or any other thing that will prove useful in the investigation.
2) File Complaint With Consumer Financial Protection Bureau (CFPB) — The CFPB is a government agency that is responsible for protecting consumers against financial fraud and scams. After you have filed a complaint with the local authorities, also report the scam to the CFPB which will take appropriate action, and will send out scam alerts to prevent people/citizens from falling into such traps in the future. It will also help them identify a pattern, and prepare safety guidelines for the users that they can follow to keep themselves scam-proof.
3) Report Scam To Relevant Exchange or Wallet Provider — If you believe the scammers hacked into a legitimate ATM, you must immediately report the scam to the Exchange or the wallet provider that the ATM is associated with. This will not only prompt them to secure the ATM to prevent such frauds in the future but will also assist them in recovering any lost funds for you.
