You may think it could never happen to you or someone you love, but bitcoin ATM fraud is on the rise.
Thieves often use urgent threats and fake documents to trick people into depositing cash into bitcoin ATMs, sending money directly to the criminals.
If you or someone you know has been scammed, acting quickly is critical to improving your chances of recovering your money.
Related: Houston teacher falls victim to bitcoin ATM fraud
Contact the bitcoin ATM company right away
The first step is to contact the company that owns the bitcoin ATM where the transaction occurred. Look for contact information on your receipt or on the machine itself. Reporting the fraud to the company immediately can sometimes help freeze or track the transaction before the scammers move the funds.
Report the scam to law enforcement
Call your local police department and file a report. You can also contact the FBI, which investigates bitcoin ATM fraud as part of its Virtual Asset Unit. Prompt reporting helps law enforcement trace the scam and potentially stop the criminals from targeting others.
Notify your bank or financial institution
If you withdrew cash from your bank or ATM to feed into the bitcoin ATM, notify your bank immediately. They can monitor your accounts for suspicious activity and may be able to help with fraud prevention.
File a complaint with the Internet Crime Complaint Center
The Internet Crime Complaint Center (IC3) at ic3.gov is a government agency that tracks internet-based scams, including bitcoin ATM fraud. Filing a report with IC3 helps authorities collect data and build cases against scam rings.
When filing a report at ic3.gov, the FBI asks that you include:
Information regarding how the scammer initially contacted you and how they identified themselves. Include identifying information such as name, phone number, and address, as well as the scammer’s email addresses and usernames.
Financial transaction information such as the date, type of payment, amount, account numbers involved (to include cryptocurrency wallet), the name and address of the receiving financial institution, and receiving cryptocurrency addresses.
Understand the challenges of recovering funds
Unfortunately, recovering money lost to bitcoin ATM scams is often difficult. Cryptocurrency transactions are irreversible and can move quickly across borders. However, Houston has seen some success in recovering funds when victims report the scam immediately.
Remember, legitimate authorities will never ask you to pay fines or fees via bitcoin ATM.
What not to do after a scam
Do not try to confront the scammer yourself or send more money. Scammers often pressure victims into repeated payments. Also, avoid sharing personal or financial information with anyone claiming to help recover lost funds unless you verify their legitimacy.
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