crypto ATM

FTC issued a public alert regarding a new crypto ATM scam

The Federal Trade Commission of the United States has issued an alert about a new variant of cryptocurrency fraud. An impostor, a QR code, and a crypto ATM where victims will be directed to send money are the three main components of the hoax.

Fraudsters pose as governmental authorities, law enforcement agents, or employees of local power providers, according to the FTC. Imposters also use dating apps to impersonate potential romantic partners. Or they call victims to inform them that they have won a prize.

It always ends with the fraudster asking for money, no matter how it begins. If the victim believes the con, the scammer instructs them to withdraw money and visit a crypto ATM. They then request to buy cryptocurrency at an ATM. The QR code comes into play here. They provide the victim with the QR code for their wallet address. As a result, the purchased crypto assets will move to the fraudster’s account once the victim scans the code.

The FTC’s Division of Consumer and Business Education’s Cristina Miranda explained:

“Here’s the main thing to know: nobody from the government, law enforcement, utility company. Or prize promoter will ever tell you to pay them with cryptocurrency. If someone does, it’s a scam, every time.”

Meanwhile, according to a crypto crime study from 2021. $7.7 billion in cryptocurrency taken from fraud victims around the world. In comparison to 2020, the figure has increased by 81 percent.