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Bạn đang xem: Bitcoin cryptocurrency ATM fraud prompts DE attorney general warning
President-elect Donald Trump said the AI and crypto czar will reform U.S. policy on digital currency.
The Delaware Attorney General’s Office is warning residents to be vigilant against bitcoin ATM scams.
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A total of $111 million was lost as a result of bitcoin ATM fraud in 2023, according to data from the Federal Trade Commission. That amount has increased exponentially every year since 2020. The FTC said the vast majority of frauds are not reported.
Bitcoin ATMs look similar to traditional ATMs, but they exchange federal currency for cryptocurrency, like bitcoin. Bitcoin is one of the more popular cryptocurrencies at a price of about $94,000 on Sunday, Jan. 12.
There are numerous bitcoin ATMs in Delaware. In Wilmington, a few are concentrated in gas stations and convenience stores. The Attorney General’s Office said these ATMs can be dangerous because they:
- Do not limit daily transaction amounts – so there’s no limit to how much you can lose in a day.
- Charge high transaction fees that can eat up a substantial portion of the money you deposit.
- Do not collect or verify the holder of the electronic wallet or the identity of the person to whom you send crypto.
- Do not require a pause or have a resting period before effectuating a transaction – so your assets are transferred away immediately.
- Are not registered with a government regulatory body – so government agencies have a hard time providing help.
- Do not have any fraud prevention or reimbursement policy and do not provide details about the transaction and where assets are being sent on the receipts.
According to the warning, these machines work by prompting you to deposit money into the ATM and either provide the address of an electronic wallet or create one. When someone puts money into a bitcoin ATM, the ATM converts the money to cryptocurrency and deposits it into the wallet. They typically charge the user a substantial fee to convert the money into cryptocurrency and transfer it to the electronic wallet.
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“The scams start through chats, social media, emails, texts, pop-ups and phone calls from strangers,” Attorney General Kathy Jennings said in the warning. “Scammers create some urgent justification for you to take cash out of your bank accounts and put it into a Bitcoin ATM. Often, the scammers fabricate an investment that promises great returns with limited risk. If it sounds too good to be true, it is.”
The warning added that victims are often directed by scammers to input an electronic wallet address, or are given a QR code to scan that in turn links to the scammer’s electronic wallet address. The bitcoin ATM then transfers the crypto to the scammer’s electronic wallet.
The scammers quickly move the crypto after it is transferred, making it difficult to trace and recover, the warning said.
The AG’s office offered the following tips to keep yourself safe from these scams if you’re looking to use bitcoin ATMs:
- Never click on links from unknown parties or respond directly to unexpected calls, messages or computer pop-ups. If you think an unexpected text or message could be legitimate, contact the company or agency that purports to have sent it, but look up the number or website yourself.
- Don’t use the phone number or link the caller or message gave you.
- Slow down. Scammers want to rush you, so stop and check out the opportunity they are pitching. Before you do anything else, talk with someone you trust.
- Never withdraw cash in response to an unexpected call or message. Only scammers will tell you to do that.
- Don’t believe anyone who says you need to use a bitcoin ATM to protect your money, to fix a problem or to get in on a great investment.
- No legitimate business or government agency will use such pressure tactics or require you to use virtual currency.
- Be cautious if someone tells you something is a secret or information cannot be shared with anyone. This is a red flag because it isolates individuals from trusted resources.
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