Lawrence Damilola
Scammers are increasingly exploiting cryptocurrency ATMs and kiosks to swindle unsuspecting victims. In a recent case in Troy, Michigan, a woman who fell victim to a scam was directed to a Bitcoin kiosk at a local gas station.
The fraudulent scheme began with an email requesting a refund for an alleged accidental overpayment of $3,966. Believing she owed the amount, the woman followed instructions to withdraw cash and deposit it into a Bitcoin ATM. After complying, the scammer claimed that not all the funds were received and demanded an additional $1,000. To resolve this, the woman was instructed to purchase two $500 gift cards and provide the serial numbers to the scammers. The total loss amounted to $4,966.
Once cash is deposited into a cryptocurrency ATM, it is immediately converted into digital currency, making it difficult to trace as scammers transfer the funds to accounts, often overseas. In 2023, the FBI’s Internet Crime Complaint Center received over 2,000 complaints involving cryptocurrency ATMs from victims aged 60 and above.
In addition to cryptocurrency schemes, the FBI has noted a surge in “phantom hacker” scams that emerged in 2023. In these cases, scammers send couriers to collect cash or precious metals from victims as part of call center schemes, often involving impersonation of tech support or government officials. Federal agencies, including the FBI and the Department of Justice, targeted nearly 3,000 “money mules” earlier this year. These individuals collect and transfer money for international fraud rings, with some even recruiting college students to open fraudulent accounts to funnel illicit proceeds.
Crypto romance scams have also become prevalent, resulting in significant financial losses. Recently, a Philadelphia tech professional lost $450,000 in a cryptocurrency romance scam. Erin West, a Deputy District Attorney in Santa Clara, California, reports receiving five to six emails daily from individuals affected by “pig butchering” scams. “We are receiving 5-6 emails a day from people who are victims of pig butchering. The most recent victim lost $5 million dollars and that’s not even the biggest amount one victim has lost to this scam,” West stated.
Stolen funds are often funneled overseas to transnational criminal organizations in countries like Myanmar and Cambodia. These organizations utilize trafficked individuals as virtual slaves to execute the pig butchering scams, exacerbating the global impact of these fraudulent operations.
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Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
