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FOR IMMEDIATE RELEASE:
April 8, 2025 |
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“Because money sent through Bitcoin ATMs is nearly impossible to recover and these machines lack oversight and regulation, they have become an attractive option for criminals engaged in fraud and money laundering,” Nessel said. “Staying informed can protect consumers from falling victim.”
A common Bitcoin ATM scam targeting older adults involves a fraudulent message or phone call. The call might be from someone claiming to be with Apple, Google, or another well-known company, or even law enforcement. The scammer tells the victim that their financial accounts have been compromised. The call recipient is told they need to take immediate action to prevent unauthorized transactions on their account. If the scammer is pretending to be from a law enforcement agency, they may even threaten the victim with criminal prosecution or jail time if the victim doesn’t pay a fine right away.
Victims are then instructed to withdraw large amounts of cash from their bank accounts. They are told to deposit the funds into a Bitcoin ATM. The cash is inserted and converted into Bitcoin. The victim is directed to scan and send a receipt or QR code to the scammer. The moment that transaction is completed, the money is gone —permanently. Traditional bank transfers, wire transfers, or credit card transactions have fraud prevention measures. These measures provide customer protection or financial institution safeguards to stop or reverse the transfer. That is not the case with Bitcoin ATM transactions.
Bitcoin ATMs lack oversight and regulation. For this reason, they are widely used for scamming and money laundering. Some consumers may attempt to use them for legitimate transactions. However, they often come with very high fees. The fees make them an inefficient and costly way to buy cryptocurrency. It’s safer and cheaper to convert cash to cryptocurrency through a licensed and regulated online exchange.
Without regulation, victims of Bitcoin ATM scams have no meaningful consumer protections. Financial institutions have fraud prevention departments that monitor transactions. Banks can file suspicious activity reports (SARs) to investigate potential fraud. Unfortunately, Bitcoin ATMs operate outside these safeguards. They allow scammers to steal money quickly and anonymously.
To avoid becoming a victim of a Bitcoin ATM scam, remember these key points:
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No legitimate company or government agency will ever ask you to deposit money into a Bitcoin ATM. If someone makes such a request, it’s a scam.
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Beware of urgent requests. Scammers create a sense of urgency to prevent victims from thinking critically about the request.
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Do not trust caller ID. Fraudsters can spoof phone numbers to make it appear as though they are calling from a trusted source.
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Never download unknown software or grant remote access to your devices. This can allow scammers to take control of your personal information.
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Talk to your bank before making large withdrawals. If you’re instructed to move money in an unusual way, seek advice first.
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If you believe you have been targeted by a scam, report it immediately. Scams can be reported to the Michigan Attorney General’s Consumer Protection Team and local law enforcement.
To file a complaint with the Attorney General or get additional information, contact:
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