Using cryptocurrency ATMs is becoming more and more common for fraudulent payments: FBI
According to the FBI, in addition to conventional payment methods like wire transfers and prepaid cards, crypto ATMs are also increasingly being used by scammers posing as cryptocurrency investors.
The FBI's Miami Field Office has issued a warning that cryptocurrency ATMs are becoming a common way for con artists to obtain money from their victims.
The details were made known as part of a public warning on "pig butchering scams," in which con artists pose as long-lost friends or potential romantic partners to steal money from victims. The warning was made on October 3.
Scammers "fatten up" their victims by pretending to be genuinely interested in them in order to gain their trust before introducing investment discussions over time.
In a joint PSA with the Internet Crime Complaint Center (IC3), the FBI cautioned that victims of these cryptocurrency scams that involve killing pigs typically have little hope of recovering their money.
The FBI, however, said that they've discovered scammers are increasingly instructing their victims to transfer money using cryptocurrency ATMs, in addition to more conventional methods like wire transfers and prepaid cards, noting:
"Many victims claim that they were instructed to buy a lot of prepaid cards or send money to foreign accounts. Another new form of payment is the use of cryptocurrencies and cryptocurrency ATMs. Tens of thousands to millions of dollars were lost per person as a result of these schemes.
In "pig butchering" scams, victims are "coached through an investing procedure" and "encouraged to make continuous contributions by the fraudsters," according to the FBI.
"The victims are told they must pay income taxes or additional fees when they attempt to cash out their investments, causing them to lose further money."
Scammers that act as public officials, police enforcement officers, or staff of local utility companies have long used cryptocurrency ATMs to trick victims into sending money under the pretense of paying off bills or delinquent taxes to avoid further fines.
According to data from Coin ATM Radar, there are over 33,500 cryptocurrency ATMs in the United States, which makes up 87.4% of the world's distribution.
The U.S. Federal Trade Commission handed out a warning regarding crypto ATM frauds in January, while also noting that the scammers do sometimes pose as potential love partners.
The FBI recommended consumers to “verify the validity of any investment opportunity” provided by these types of people, keep a watch out for domain names imitating reputable exchanges, misspelled URLs, and to not download any apps if the legality cannot be verified.
While it might be assumed that the victims are uninitiated in technology or investing, this isn't always the case. Law enforcement agencies across the U.S. have issued repeated warnings about pig butchering and romance scams.
In June, it was revealed that a wave of scams was targeting tech-savvy Silicon Valley professionals.
San Francisco has a history of pig slaughtering scams, with several victims losing more than $1 million each.
this same post can also be found on my Serey & blurt blog with the same usernames @olusolaemmanuel