The US Federal Bureau of Investigation (FBI) has issued a warning about the increasing number of cryptocurrency scams occurring in the US. The FBI recently announced that scammers are forcing citizens to use physical cryptocurrency ATMs and digital QR codes to complete malicious transactions.
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The federal agency has advised people not to accept requests for cryptocurrency payments from unidentified callers, while also suggesting they refrain from providing personal information in their calls.
Scams involving online impersonations of government officials, fake romantic partners, and lottery scams were some of the ways malicious fraudsters target unsuspecting citizens.
“The scammer often requests payment from the victim and may ask the victim to withdraw funds from their accounts. The scammers provide a QR code associated with their cryptocurrency wallet for the victim to use during the transaction,” the FBI explained in its warning. “The scammer then directs the victim to a physical cryptocurrency ATM to deposit their funds, purchase cryptocurrency, and use the provided QR code to auto-fill the recipient’s address.”
Cryptocurrency owners have also been advised to avoid using ATMs that advertise “anonymity” and only allow transactions based on phone numbers and email, as they may not comply with US federal regulations and may facilitate money laundering.
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Bitcoin ATMs are becoming increasingly popular in the US as well as other countries. In October, Walmart announced the installation of 200 Bitcoin ATMs in select stores across the US, allowing customers to make purchases with cryptocurrency. In El Salvador, for example, Bitcoin ATMs allow people to transact with the crypto token or convert it to fiat.
According to the FBI, scammers try to keep all communication online to hide their true identity while leading their victims step by step.
The federal agency further advises people not to send money to strangers, even if they say they are government officials or lawmakers.
Since cryptocurrencies are decentralized, recovering the amount locked in them is difficult. The scammers take the money immediately and deposit it into their other accounts, usually abroad. The victim suffers nothing but financial losses.
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Total cryptocurrency crimes amounted to about $10.52 billion (about Rs 79,194 crore) in 2020, according to a report.
The same report had also highlighted that scams plaguing the cryptocurrency space are a significant problem that accounted for 67.8% of total cryptocurrency crimes in 2020.
