The District of Columbia Department of Insurance, Securities and Banking (DISB) is warning consumers of an increase in scammers targeting virtual currency kiosks. Often referred to as Bitcoin ATMs (BTMs), virtual currency kiosks in locations like grocery stores and gas stations look and operate like regular bank ATMs. Unlike a regular bank ATM, these virtual currency kiosks allow individuals to purchase and send virtual currencies.
Crypto was the currency of choice by scammers, amounting to $6,781,705 in losses to District residents in 2023.
What should I watch out for?
You should always be on alert for requests to send money to someone you do not know and trust personally. While there are many tactics, scammers may work to gain a victim’s trust over time and create a false sense of security before fabricating an urgent situation in which they need the victim’s help.
Traditionally, scammers trick unsuspecting victims into sending money via money transfers or gift cards. Now, scammers are directing victims to send virtual currency via these virtual currency kiosks.
The scammer will direct their victim to deposit the cash into a virtual currency kiosk and purchase virtual currency. The scammer then provides a QR code, which sends the currency to their virtual wallet.
What precautions should I take?
Never:
- Send money or virtual currency to someone you do not know.
- Send money or virtual currency to someone you think you know if the circumstances are unusual. This includes if the person requests cash or virtual currency in advance, claims an emergency, or creates any other urgent need for funds.
- Send money or virtual currency to someone who has provided you with a check, asks you to cash it, and allows you to keep a portion of the cash for yourself if you send the remaining balance to them.
- Provide your personal information, such as your Social Security Number, bank or credit card account number, and cryptocurrency wallet address, to anyone.
Always:
- Ensure that the company or person you send money or virtual currency to is legitimate. No legitimate business will request that you send money or virtual currency in advance.
- Ask questions and reject attempts to pressure you into making hasty decisions or providing information on the spot.
- Confirm the identity of the person you are speaking to by looking up and contacting the published customer service number of the company they claim to be affiliated with.
- Remember, carrying large amounts of cash is never a good idea.
Report Fraud
If you live in the District of Columbia and have been asked by an individual to send them virtual currency from a virtual currency kiosk, you should:
- Contact DISB or the DC Office of the Attorney General (202.442.9828, or email [email protected]) to verify the authenticity of the business and their representatives.
- Conduct independent internet searches for information about similar scams.
Report scammers to the DISB Enforcement and Consumer Protection Division, 202.727.8000.