(Rejected)FBI Says Crypto ATMs Are Emerging As The Payment Method For Crypto Scams

Together with the usual method for payments, such as wire transfers and prepaid cards, the FBI says crypto ATMs are also now emerging as methods of payment for crypto scams.

The United States Federal Bureau of Investigation’s (FBI) Miami Field Office has warned citizens that crypto ATMs are now the latest means of payments scammers use to receive funds from deceived victims.

This caution was initially revealed in a public service announcement released on October 3rd. The information warns against investment schemes involving cryptocurrency scams, “called Pig Butchering,” where scammers disguise as long-lost friends, potential romantic partners, or highly successful traders in cryptocurrency to gain the victim's confidence and trust and then defraud them of their money.

The FBI stated that with the pig butchering scams circulating, they’ve noticed besides the traditional means of payment such as wire transfers and prepaid cards, scammers have increasingly been directing their victims to transfer funds using crypto ATMs. 

The FBI stated:

“Many victims report being directed to make wire transfers to overseas accounts or purchase large amounts of prepaid cards. The use of cryptocurrency and cryptocurrency ATMs is also an emerging method of payment.” 

More details about the report state after the scammer must have posed as either of these characters mentioned above, to gain the victim’s trust, the scammer ‘coaches’ the victim through some investment process and encourages them to make continuous deposits.

Later on, the victim would have the impression their investment is growing exponentially through the fake websites/apps created by the scammer. However, when it’s time for the victim to withdraw their return on investment, they are told by the scammer to pay income taxes or additional fees, which would only cause them to lose more funds if they comply. 

According to the FBI, In the public service announcement in cooperation with the Internet Crime Complaint Center, victims eventually lose their funds and have zero chance of getting them back.

“The victims are unable to retrieve their purported investments and often lose contact with the fraudsters, either due to the closing of the fraudulent website or the fraudster ceases contact with the victim.”

Just as crypto ATMs are not breaking news, their use for scam payment has also been around for a while. In June, a report stated that tech-savvy professionals from Silicon Valley were being defrauded by the pig butchering in San Francisco, with many losing over $1 million.

While this case might seem as though victims have no idea about it, and that’s probably why they are getting scammed, it should be noted that institutions have long warned about pig butchering.

In January, The U.S. Federal Trade Commission sent out a warning regarding crypto ATM scams noting that the scammers do sometimes pose as potential romantic partners. In addition, Law enforcement agencies across the U.S. have also warned about pig butchering and romance scams several times.

To conclude, the FBI advises individuals to Verify the validity of any investment opportunity, be on the lookout for misspelled URLs and domain names impersonating financial institutions, especially cryptocurrency exchanges and not download any apps until the legitimacy is verified.