Bitcoin ATM Fraud/Scams

Scammers take advantage of the public’s limited familiarity with cryptocurrency and use fear-based tactics to pressure victims into acting quickly. 

A common scheme begins with a fraudulent phone call, text, or message. The scammer may claim to be from a well-known company such as Apple or Google, or from a government agency. Victims are told that financial accounts, Social Security numbers or online shopping accounts have been compromised and that immediate action is required to stop unauthorized transactions. In some cases, scammers posing as a government agency will threaten arrest, criminal charges, or jail time if a payment is not made right away.

Victims are typically instructed to:

  • Withdraw large amounts of cash from their bank account.
  • Go to a Bitcoin ATM.
  • Deposit the cash, converting it into Bitcoin.
  • Scan or send a receipt or QR code to the scammer.

Once the transaction is completed, the money is permanently gone.

Unlike traditional bank transfers, wire transfers, or credit card payments, Bitcoin ATM transactions cannot be reversed.  These transactions do not include fraud protection measures or safeguards that allow banks or financial institutions to stop or recover the funds.

Here are tips for protecting yourself: 

  • Do not entertain calls from unknown numbers.
  •  Hang up if someone pressures you to use a Bitcoin ATM.
  • Never send money to someone you haven’t met in person.
  • Talk with loved ones — especially seniors — about these scams.
  • Stop and verify before acting.

If you’re unsure or think you’ve been targeted, contact the Oakdale Police Department by calling 9-1-1 before sending money.

If you believe you have been a victim of a scam, please call 9-1-1 immediately and request to speak with an officer.

For more information, please check out the following links from the Federal Trade Commission: