As interest in cryptocurrency grows in the United States, so does the number of ATMS facilitating cryptocurrency transactions. However, scammers have taken advantage of this convenience to defraud vulnerable individuals in Colorado. One man, who remained anonymous, fell victim to a scam where he was threatened with arrest warrants and fines if he did not pay up using a bitcoin ATM.
The scam involved a spoofed phone call from the El Paso County Sheriff’s Office, followed by a text message with a fake warrant and a QR code for a bitcoin wallet. The victim withdrew $15,000 from his bank and deposited it into the bitcoin ATM as instructed by the scammers. This incident is part of a larger trend of bitcoin ATM scams, with losses reaching $65 million in the first six months of 2024.
In response to these scams, the Mesa County Sheriff’s Office has dedicated resources to investigate such crimes. Colorado state Sen. Janice Rich introduced a bill to regulate bitcoin ATMs and require cooperation to prevent future losses. The legislation includes daily transaction limits and regulations on fund returns. These protections could have prevented the loss experienced by the victim in this case.
To avoid falling victim to bitcoin ATM scams, the Federal Trade Commission advises individuals to never click on suspicious links or respond to unexpected calls, messages, or computer pop-ups. They also urge individuals to verify the legitimacy of requests from companies or government agencies and to seek advice from trusted individuals before taking any action in response to unexpected communication.
