Scammers are getting more sophisticated, and one of the fastest-growing threats involves Bitcoin and cryptocurrency ATMs. These scams don’t start at the machine. They start with fear, urgency, and a convincing story designed to push you into acting before you have time to think.
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Here’s how these scams work, the red flags to watch for, and what to do if you or someone you love is targeted.
You receive a phone call, text message, or email from someone claiming to be from your bank, a government agency like the IRS, a tech support company, or even a romantic interest. Often, the sender ID or phone number looks legitimate because scammers use spoofing to disguise their identity.
The message is designed to alarm you. You may be told there’s fraud on your account, an overdue bill, a computer virus, or a limited-time investment opportunity promising unusually high returns. The goal is simple: create pressure so you act immediately.
Once you’re worried, the scammer gives clear directions. You’re told to withdraw cash from your bank, sometimes in large amounts, and reassured that this is necessary to fix the problem.
Next, you’re guided to deposit the cash into a Bitcoin or cryptocurrency ATM. The scammer may stay on the phone with you, claiming this is a secure way to protect your money, pay a fine, or fund an investment.
As soon as the cash is deposited, it’s converted into cryptocurrency and sent directly to the scammer’s digital wallet. Because these transactions are largely untraceable, recovering the money is extremely difficult, if not impossible.
No bank, government agency, or legitimate business will ever instruct you to withdraw cash or deposit it into a Bitcoin or crypto ATM.
If you receive an urgent call about your account, hang up. Call your bank back using the phone number on your debit card or the official website, never the number provided in the message.
Scammers often tell victims not to explain the transaction to bank staff, using phrases like, “If you hang up, I can’t help you,” or, “The bank is involved in this.” This is a major warning sign.
Guaranteed or unusually high investment returns with little or no risk don’t exist. If it sounds too good to be true, it almost always is.
Never share passwords, PINs, or one-time passcodes with anyone, no matter how official they claim to be.
Do not respond to further calls, texts, or emails. End the conversation right away.
Report the incident to the Federal Trade Commission at ReportFraud.ftc.gov and to the FBI’s Internet Crime Complaint Center (IC3) at IC3.gov. Reporting helps authorities track patterns and prevent others from becoming victims.
If you believe your account may be compromised, or if you’ve already withdrawn funds, contact your bank immediately. The sooner they know, the more they can help.
Crypto ATM scams rely on fear and speed. The best defense is slowing down, verifying independently, and remembering this simple rule: no legitimate organization will ever ask you to move your money through a crypto ATM.
If you ever feel unsure, pause and ask questions. A trusted bank or financial professional would much rather talk through a concern than see you fall victim to a scam.