The FBI Issued New Warning Regarding Crypto ATM Scammers

The FBI issued a new warning regarding crypto ATM scammers as they are leveraging the machines and QR codes for payments so let’s read more in our latest cryptocurrency news today.

The FBI issued a new warning over fraudulent schemes that use crypto ATMS and QR codes as the agency said in a public statement:

“The FBI has seen an increase in scammers directing victims to use physical cryptocurrency ATMs and digital QR codes to complete payment transactions.”

According to the FBI, these schemes involve online impersonation schemes, lotteries, and romance schemes as well. Regardless of the type of schemes involved, the FBI said that these methods are using crypto ATMs and QR codes the most. According to the FBI, the scammers often request payments from victims, and in turn, it directs them to a crypto ATM that is equipped with a QR code associated with the scammer’s wallet. The FBI added:

“Cryptocurrency’s decentralized nature creates challenges that make it difficult to recover.”

The agency added that once a victim makes a payment, the scammer owns the crypto and often transfers the funds into the account overseas. This differs from a traditional wire transfer where the payments take a day or two before they are settled:

 “It can also make law enforcement’s recovery of the funds difficult and can leave many victims with a financial loss.”

Along with the warning, the FBI shared points for people to protect themselves from crypto-ATM-related scams. The tips echoed some of the oldest advice when it comes to financial security which includes not sending payments to people that have spoken to online and not responding to callers from unknown phone numbers. The FBI advised people not to use crypto ATMs that are claiming anonymity, adding that the instructions to use these machines are a strong indicator of fraud:

“These cryptocurrency ATMs may be non-compliant with U.S. federal regulations and may facilitate money laundering.”

On a more positive note, The American multinational retail corporation will start allowing customers to purchase BTC using ATMs installed on some of its US Shops, and the initiative became possible after a new collaboration between the retail giant Coinme and Coinstar. Walmart’s name got involved with crypto in the past but a few months ago it got involved in a fake story with Litecoin for an alleged partnership that supposedly enabled clients to make payments with crypto. While the rumors caused quite the enthusiasm in the digital asset sector, they turned out to be fake and the market went south.