Increase in scam victims losing money at bitcoin ATMs, say watchdogs

President Trump recently authorized the establishment of a Bitcoin reserve through an executive order, ensuring that the government would work with Bitcoin as a financial asset. Meanwhile, a woman from Troy, Michigan, fell victim to a scam that saw her lose $17,500 by being convinced to deposit money into a Bitcoin ATM under false pretenses.

The woman, Stacy Hazinski, was targeted by scammers who claimed that someone was sending her money to a gambling website, despite her not being a gambler. These con artists used various tactics, including impersonating Apple and her credit union to gain her trust. Unfortunately, this led to a series of events that allowed the scammers to steal her entire tax refund and wipe out her savings.

Hazinski received a text message about a supposed charge on her Apple Pay account, prompting her to call a number to resolve the issue. This initial contact with the scammers set the stage for a sophisticated scheme that left her devastated and out a substantial amount of money. Despite filing her taxes early and being financially responsible, Hazinski found herself in a dire situation due to the deception of these criminals.

This distressing incident sheds light on an alarming trend where scammers are manipulating individuals into using Bitcoin ATMs to deposit money under false pretenses. By spinning elaborate tales and posing as reputable entities like Apple or law enforcement, these fraudsters exploit people’s fears and vulnerabilities to carry out their schemes. They use detailed backstories to convince victims that depositing money into these crypto ATMs is a way to safeguard their funds or avoid legal trouble.

The scammers are well-prepared and knowledgeable about the location of Bitcoin ATMs in victims’ neighborhoods, often instructing them to withdraw cash from their bank accounts and transfer it to these machines. To further deceive their targets, the criminals misleadingly refer to Bitcoin ATMs as “safety lockers,” creating a false sense of security around the transactions. Michigan’s Attorney General Dana Nessel issued a warning to residents about this scam in an effort to raise awareness and protect consumers from falling victim to similar fraudulent activities.

In conclusion, the cautionary tale of Stacy Hazinski serves as a stark reminder of the dangers posed by scammers who exploit modern financial technologies like Bitcoin ATMs to defraud unsuspecting individuals. By understanding the tactics employed by these criminals and remaining vigilant against deceptive practices, consumers can safeguard themselves from the devastating consequences of financial fraud. It is essential to stay informed, exercise caution when dealing with unfamiliar transactions, and seek guidance from trusted sources to avoid becoming a victim of such schemes.