Cryptocurrencies have gained a lot of popularity in the past few years, giving rise to several bitcoin ATMs across America. These ATMs are installed to make things easier for customers who wish to buy bitcoins and other cryptocurrencies using cash. However, criminals are also cashing in on the crypto craze by conducting illicit activities.
Recently a warning has been issued on behalf of the US Federal Trade Commission (FTC) about how scammers are executing their dark activities and robbing people of their money. They pretend to be someone from the government officials or a prize promotor and reach out to the concerned citizen using call, text, email, or social media, asking the victim to pay money to win the lottery, prize, or anything more alluring! Time and again, the bitcoin ATM scam has been brought up in several global finance events held in Vegas,like the Money 2.0 Conference, to unmask bad actors and tackle the scam efficiently.
Such perpetrators are professionals and persuade the victims to withdraw money while urging them to visit the nearby crypto ATM; they focus mainly on fiat money to purchase bitcoins. Once you follow their instructions, the scammer sends you a QR code embedded with their crypto address, and you lose all your money within seconds.
This blog is an out-and-out guide about the bits and pieces extracted from several prominent financial services events of 2022. With the help of it, you can acquire all the necessary information to help you stay aware and alert to fight these prevalent bitcoin ATM scams in the financial market.
Let’s dive in!
Bitcoin ATMs: Safe or Scam?
We understand that you have given everything to earn every penny you have saved in your bank, but with the rise of bitcoin ATM scams, it becomes impossible to trust and embrace such ultra-modern technology. After all, you don’t want to lose all your money just because you are a Luddite, right? For your convenience, we have incorporated every single detail about bitcoin ATMs and how safe it is so you can make an informed decision. Check out here-
As the name suggests, Bitcoin ATMs are terminals that individuals use anonymously to sell and buy bitcoins using technology. However, these terminals are not actual ATMs, and like any other ATMs, Bitcoin ATMs do not dispense cash; customers use these terminals that are interconnected with the bitcoin network, which allows them to purchase cryptocurrencies using deposited money.
Experts in investment conferences discussed the safety level of bitcoin ATMs as it uses advanced encryption technology. Bitcoin uses a public-private key pair, and without your unique private key, no one can steal or move your bitcoins. The devices have software defenses against malware and precautions against physical or hardware failure.
Bitcoin ATM Scams Rising Rapidly
Since the beginning of 2020, the bitcoin ATM scam has seen a tremendous rise, and it is distressing owing to the explosive popularity of bitcoin ATMs. Several reports have been submitted against ATM scams within which scammers direct victims into using physical bitcoin ATMs and digital QR codes to complete the transactions. As soon as the victims use the QR codes to initiate the transaction, all their money gets auto-populated into the perpetrator’s crypto wallet.
Many financial services events in 2022talked about the types of bitcoin ATM scams and how you can stay alerted against them; so, here is a list of common scams that you can avoid and lead a seamless bitcoin ATM experience:
You don’t want to underestimate the length scammers can go to hoodwink into having you believe that they are some government officials and that you owe the government some money. They can try reaching out to you via call or just pop in your email box, you never know! Once they convince you of their credibility, they encourage you to use a bitcoin ATM to repay the debt you owe to the government.You must know that the government doesn’t accept Bitcoin for any said purpose, so cut the call immediately or report the email spam to avoid getting into the traps of these bad actors.
Social Security Scams
Scammers assume the identity of someone from the Social Security Administration who lunges in by saying that you must verify your ID and make a payment to avoid any penalty troubles in the future. Cutting a long story short, no government agency asks for payment via Bitcoin ATMs, so there is your clue to report the call as soon as you get it.
Yes, it is understandable that getting your utilities cut can be one of the worst things to imagine. And the situation gets even more hectic when you are pressured to pay the bills; otherwise, you won’t be able to retrieve them anytime soon. This is the prime tactic of any scammer– creating a sense of urgency, so the victim doesn’t have much time to think about it. The suggestion would be to take a seat and breathe deeply once you receive a call like this. It would be best to double-check with your service provider no matter how urgent the other party seems. Also, if someone advises you to make a payment using a bitcoin ATM, do not do it, as simple as that!
The Bottom Line
Bitcoin ATMs are as safe as you assume them to be, and it also depends on the factor of awareness. Presently, Bitcoin machines allow an individual to be anonymous if they purchase up to $900 using cryptocurrency. Some providers might ask for your phone number before proceeding with the transaction, but others don’t require any information.
Don’t let a simple transaction be a way for scammers to get the best of you. To steer clear of such scams, you must be cautious of your gut feeling and, most importantly, be informed. And if you need profound knowledge on the matter, you must try attending at least one investment conferencelike the Money 2.0 Conference to gain valuable insights and combat the scam on your own.