FBI Warns Of Scams Related To Crypto ATM And QR Code Payments
The Federal Bureau of Investigation (FBI) issued warning on increasing number of fraudulent schemes using cryptocurrency automated teller machines (ATM) and quick response (QR) codes to facilitate payments.
The FBI warns the public of fraudulent schemes leveraging cryptocurrency ATMs and Quick Response (QR) codes to facilitate payment. According to the FBI there has been an increase in scammers directing victims to use physical crypto ATMs and QR codes to complete payment transactions.
Scammers will request payment from the victim and then direct the victim to withdraw money from the victim’s financial accounts, such as investment or retirement accounts.
According to FBI statement:
Criminal actors, in various fraudulent schemes, maliciously leverage cryptocurrency ATMs and QR codes to receive payments from victims. Such schemes include online impersonation schemes (scammer falsely identifies as a familiar entity such as the government, law enforcement, a legal office, or a utility company), romance schemes (scammer establishes an online relationship with a victim by creating a false sense of intimacy and dependency), and lottery schemes (scammer falsely convinces a victim that they have won an award and consequently demands the victim to pay lottery fees).
The FBI warns they will also provide a QR code associated with the scammer’s cryptocurrency wallet for the victim to use during the transaction.
The scammer will then direct the victim to a physical cryptocurrency ATM to insert their money, purchase cryptocurrency and use the provided QR code to auto-populate the recipient address. Often the scammer is in constant online communication with the victim and provides step-by-step instructions until the payment is completed, said the FBI.
They issued the following guidelines to avoid being scammed:
Do not send payment to someone you have only spoken to online, even if you believe you have established a relationship with the individual.
Do not follow instructions from someone you have never met to scan a QR code and send payment via a physical cryptocurrency ATM.
Do not respond to a caller, who claims to be a representative of a company, where you are an account holder, and who requests personal information or demands cryptocurrency. Contact the number listed on your card or the entity directly for verification.
Do not respond to a caller from an unknown telephone number, who identifies as a person you know and requests cryptocurrency.
Practice caution when an entity states they can only accept cryptocurrency and identifies as the government, law enforcement, a legal office, or a utility company. These entities will likely not instruct you to wire funds, send checks, send money overseas, or make deposits into unknown individuals’ accounts.
Avoid cryptocurrency ATMs advertising anonymity and only requiring a phone number or e-mail. These cryptocurrency ATMs may be non-compliant with US federal regulations and may facilitate money laundering. Instructions to use cryptocurrency ATMs with these specific characteristics are a significant indicator of fraud.
If you are using a cryptocurrency ATM and the ATM operator calls you to explain that your transactions are consistent with fraud and advises you to stop sending money, you should stop or cancel the transaction.
