Scams involving Bitcoin (BTC) ATMs are become more and more common, costing unwary consumers large sums of money.
One such instance occurred recently when Jim Meduri of San Jose got a call from someone claiming to be his son, saying that he had been in a vehicle accident, according to The Los Angeles Times.
Posing as a defence lawyer and a courtroom clerk, the con artists concocted a tale about Meduri’s kid possibly being sent to Nevada because of a rumoured mumps outbreak in the local jail.
Meduri consented to use a Bitcoin ATM to transmit bail money because he was worried about his son’s safety.
Rising Threat: Bitcoin ATM Scams Swindle Victims Out of Thousands,Rising Threat: Bitcoin ATM Scams Swindle Victims Out of Thousands
“They played on fear and what a parent would do to help their kid, and it was elaborate,” Meduri added.
He gave the con artists his money, put $15,000 in the machine, and transferred the money. Meduri didn’t realise he had been duped until much later.
Authorities to Investigate Bitcoin ATM Frauds
The story of Meduri is only one illustration of how con artists take use of Bitcoin ATMs to trick gullible people.
Convenience shops, gas stations, and even bakeries have these machines that let people buy cryptocurrencies with cash rapidly. Unlike wire transfers or cheques, cryptocurrency is harder to track down.
Law enforcement organisations are alerting the public to this rising practise of fraudsters taking advantage of the ease that these ATMs provide.
California will enact Senate Bill 401, which will cap daily bitcoin ATM withdrawals at $1,000 per individual, beginning in January.
The bill, which Governor Gavin Newsom signed into law, also places a ceiling on fees charged by bitcoin ATM operators starting in 2025, at $5 or 15% of the transaction value, whichever is higher.
These precautions are meant to shield people from con artists and stop big sums of money from being spent on bitcoin purchases.
Although there have always been bitcoin scams, the usage of cryptocurrencies by con artists has grown in the last several years.
Over 46,000 victims have been recorded since 2021, and the Federal Trade Commission claims that over $1 billion in bitcoin has been lost to fraudsters.
Authorities contend that restricting transactions on Bitcoin ATMs will give people more time to spot fraudulent schemes and stop them from paying large sums of money in cash for cryptocurrency purchases.
Rising Threat: Bitcoin ATM Scams Swindle Victims Out of Thousands,Rising Threat: Bitcoin ATM Scams Swindle Victims Out of Thousands,Rising Threat: Bitcoin ATM Scams Swindle Victims Out of Thousands, Bitcoin Crypto news, Bitcoin News