FBI issues advisory on fraudsters using crypto ATMs

The Federal Bureau of Investigation (FBI) has issued a warning over increased scams done through cryptocurrency ATMs. The FBI noted an “increase in scammers” using crypto ATMs and Quick Response (QR) codes for fraudulent dealings.

Besides the warning, the Bureau also gave people several tips that they can use to protect themselves from these fraudsters.

Crypto ATMs being used by scammers

One of the features in crypto ATMs that hackers are using is the Quick Response codes. Threat actors are now using these codes in some cryptocurrency schemes as a way of defrauding users.

The FBI warning read in part that, “The FBI has seen an increase in scammers directing victims to use physical cryptocurrency ATMs and digital QR codes to complete payment transactions.”

The FBI also stated that hackers were luring victims through a phishing strategy where they pretended they were a renowned government or private entity. They also lured victims through social platforms such as dating sites and lottery scheme sites.

The fraudsters lured the victim into a cryptocurrency ATM machine, where they inserted fiat currency to purchase digital assets. However, after the payment is complete, the digital assets will not go into the victim’s wallet but to the fraudster’s wallet. Most of the victims are people with individual and retirement accounts.

When the fraudster receives the money, they even transfer the tokens into offshore accounts outside of the US borders. Therefore, it becomes hard for the authorities to recover the stolen funds.

FBI issues advisory

The FBI also gave several tips that people can use to ensure they do not fall victim to these scammers. The Bureau stated that people should not send payments to unknown persons. Besides, one should also refrain from scanning QR codes and sending funds through a crypto ATM.

Another best practice includes being aware of phishing schemes from fraudsters who call users intending to lure them into disclosing their details through a telephone call. In case of doubt, one is advised to consult with a local law enforcement agency. Researching before using any crypto ATM is also advisable.

Your capital is at risk.

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