| If you’re like most Americans, you’ve probably walked right past a “crypto ATM” without even realizing it. These often-colorful kiosks resemble regular ATMs and are popping up in supermarkets, convenience stores, gas stations, restaurants, liquor stores and even laundromats across the U.S. While crypto ATMs provide a legitimate way to convert real dollars into cryptocurrency, they have quickly become a preferred payment method for scammers. According to the Federal Trade Commission, reported fraud thefts through crypto ATMs totaled $65 million in the first half of 2024 alone, with $46 million reported by victims aged 60 and older. The actual amount stolen is likely much higher, as fraud is notoriously underreported. Here’s what to know about how scammers use cryptocurrency ATMs to steal millions from victims. |
| How It Works• An unexpected call or message from someone claiming to be a trusted source, like the utility company, says they are on the way to cut off power because the account is past due.•To avoid the shut-off, they direct you to withdraw cash from your financial institution and head to a nearby crypto ATM to pay the bill in the quickest manner possible.•Similarly, this scenario may involve an unexpected call from someone who claims to work at your financial institution saying your account is under attack and to protect those assets, they need to be converted at a crypto ATM. |
| What You Should Do•If you receive an unexpected communication from someone who claims to represent a business you engage with, sign in to your account via an app or website or call using a number on a paper statement, rather than following their direction on responding by a given link or phone number.•Most scams begin with three common elements: unexpected contact, a surge of emotion and a sense of urgency. When you see these signs, take an “active pause” to consider the communication. Is this typically a way you would interact with them? Is there something you’ve heard about this that might suggest it’s not legitimate? This gives you time to process what’s happening and can help you avoid fraud. |
reprinted from AARP Fraud Watch Network