Crypto ATMs Are Becoming A Popular Method For Fraudulent Crypto Payments: FBI

The Miami Field Office of the Federal Bureau of Investigation (FBI) has warned that crypto ATMs are becoming a popular method that scammers use to receive funds from defrauded victims.

The information was revealed as part of an October 3 public warning of “pig butcher scams” where scammers pose as long-lost friends or potential romantic partners to extort money. to the victims.

Scammers “fatten” their victims by showing a supposedly sincere interest in gaining their trust, then gradually introduce investment discussions into the relationship.

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In the public service announcement in cooperation with the Internet Crime Complaint Center (IC3), the FBI warned that victims of these crypto pig butcher scams usually have no chance of recovering their funds.

However, the FBI noted that it has noticed that scammers are increasingly directing their victims to transfer funds via encrypted ATMs, alongside more well-known methods such as wire transfers and prepaid cards, noting:

“Many victims report being told to make wire transfers to overseas accounts or to buy large amounts of prepaid cards. The use of cryptocurrency and cryptocurrency ATMs is also an emerging payment method. Individual losses related to these schemes ranged from tens of thousands to millions of dollars.

The FBI noted that in “pig butcher” scams, victims are “coached through an investment process” and “encouraged to make ongoing deposits by the fraudsters.”

“When victims attempt to cash out their investments, they are told they have to pay additional income taxes or fees, causing them to lose additional funds.”

Crypto ATMs have long been used by scammers who pose as government officials, law enforcement officers, or employees of local utility companies, and coerce victims into sending them payments under the guise of paying unpaid bills or taxes to avoid further penalties.

There are nearly 33,500 cryptocurrency ATMs in the United States according to data from Coin ATM Radar, with the United States accounting for 87.4% of global crypto ATM distribution.

The U.S. Federal Trade Commission issued a warning about crypto ATM scams in January, while also noting that scammers sometimes pose as potential romantic partners.

The FBI has urged people to “verify the validity of any investment opportunities” introduced by these types of people, watch out for domain names impersonating legitimate exchanges, misspelled URLs, and not download any apps. if legitimacy cannot be verified.

Related: Beeple’s Discord URL ‘hacked’, directing users to wallet drainer

Law enforcement in the United States has repeatedly warned against hog slaughter and romance scams, and while one might assume that the victims are not well educated in technology or investment, this is not always the case.

In June, it was reported that tech-savvy professionals in Silicon Valley were duped by a wave of hog slaughter scams in San Fransico, with several people each losing more than $1 million because of it. type of financial fraud.

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Crypto ATMs Are Becoming A Popular Method For Fraudulent Crypto Payments: FBI


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