AG Jennings warns of Bitcoin ATM scams

Delaware’s Attorney General Kathy Jennings has warned citizens to watch out for Bitcoin ATM scams. The warning comes in the wake of Bitcoin ATMs playing a more significant role in cryptocurrency scams than ever, according to the Delaware Department of Justice’s Investor Protection Unit.

The scams start through chats, social media, emails, texts, pop-ups, and phone calls from strangers, warned Jennings.

“Scammers create some urgent justification for you to take cash out of your bank accounts and put it into a Bitcoin ATM,” she said. “Often, the scammers fabricate an investment that promises great returns with limited risk. If it sounds too good to be true, it is.”

The DOJ Investor Protection Unit came up with a few tips to protect yourself against such scams, including not clicking on unknown links or rushing through a transaction. It recommended citizens never withdraw cash in response to an unexpected call or message, explaining that only scammers will tell you to do that.

Bitcoin ATMs – also known as Crypto ATMs or Crypto Kiosks – are electronic kiosks similar to ATMs meant to facilitate purchasing cryptocurrencies using a financial transaction card, including a debit card. These machines appear like traditional ATMs and are often located in gas stations, convenience stores, malls and other places with high traffic. The Bitcoin ATMs provide convenient access to digital currencies but are increasingly used in crypto scams.

It quoted a Federal Trade Commission statistic that consumers had reported more than $110 million in losses to scams involving Bitcoin ATM machines in 2023, up 1,000% since 2020.