FTC issues public warning about new crypto ATM scam

The
United
States
Federal
Trade
Commission
published
an
alert
of
a
new
version
of
a
scam
involving
cryptocurrencies.
The

scam

has
three
key
components,
an
impersonator,
a
QR
code
and
a
crypto
ATM
where
the
victims
will
be
directed
to
send
money.

According
to
the
FTC,
fraudsters
pretend
to
be
public
officials,
law
enforcement
agents
or
employees
of
local
utility
companies.
The
imposters
also
utilize
dating
apps
and
pretend
to
be
potential
romantic
partners
or
call
victims
to
announce
that
you’ve
won
a
prize.

No
matter
how
it
starts,
it
always
ends
up
with
the
scammer
asking
for
money.
If
the
user
falls
for
the
spiel,
the
scammer
tells
them
to
withdraw
some
cash
and
go
to
a
crypto
ATM.
After
that,
they
ask
to
purchase
crypto
through
the
ATM.
Here,
the
QR
code
comes
into
play.
They
share
the
QR
code
of
their
wallet
address
with
the
victim.
Because
of
this,
once
the
victim
scans
the
code, the
purchased
crypto
assets
would
transfer
to
the
fraudster’s
account.

Cristina
Miranda
from
FTC’s
the
Division
of
Consumer
and
Business
Education
explained: 

“Here’s
the
main
thing
to
know:
nobody
from
the
government,
law
enforcement,
utility
company
or
prize
promoter
will
ever
tell
you
to
pay
them
with
cryptocurrency.
If
someone
does,
it’s
a
scam,
every
time.”



Related:




CertiK
identifies
Arbix
Finance
as
a
rug
pull,
warns
users
to
steer
clear

Meanwhile,
a

crypto
crime
report
shows

that
in
2021,
$7.7
billion
worth
of
crypto
was
stolen
from
scam
victims
worldwide.
The
number
reveals
an
81%
increase
in
comparison
to
2020.

read original article here