Told to pay at a Bitcoin ATM? It's a scam, every time

The call sounds serious. Someone says they're from your bank, the government, the power company, or tech support. There's a problem with your money, and you have to act today. Then they say something strange. Take out cash and bring it to a Bitcoin ATM.

The call

This is the fraud department. Your accounts have been compromised. To protect your savings, withdraw the cash and deposit it at the Bitcoin machine near you. I'll stay on the line and send you a QR code. Don't tell the bank teller why.

That's an example of the kind of call going around. The story changes. The ending is always the same: cash into a crypto machine.

How the scam works

Bitcoin ATMs are kiosks in gas stations, grocery stores, and convenience stores. They turn cash into cryptocurrency. The FBI says scammers send a QR code tied to their own crypto wallet. When you scan it, the machine sends your cash to them, and it's very hard to get back.

The FTC says these scams often start with a story about a hacked account, a problem with your Social Security number, an unpaid bill, or a virus on your computer. The caller may stay on the phone and walk you through each step at the machine. The FTC says people 60 and over reported losing $46 million to Bitcoin ATM scams in just the first half of 2024.

The red flags

• Anyone tells you to use a Bitcoin ATM. The FTC says real businesses and government agencies will never do that, and anyone who asks is a scammer.
• You're told to move money to "protect" it. The FTC says no real agency will tell you to do this.
• They send you a QR code. That code points to their wallet, not a safe account.
• They stay on the phone while you're at the machine. That's to keep you from stopping to think.
• "Don't tell the teller." Secrecy keeps people who could help out of the loop.
• A utility wants crypto. The FTC says no utility company will demand payment in cryptocurrency.

What to do

1. Hang up. You don't owe a stranger on the phone an explanation.
2. Don't scan the QR code or put cash in the machine.
3. Call your bank, agency, or utility yourself using a number you already trust, like the one on your card or a past bill.
4. Talk to someone you trust before you move any money.
5. Report it at ReportFraud.ftc.gov.

Already put cash in the machine?

1. Call the Bitcoin ATM company right away. Use the number on the machine or your receipt, and ask if they can stop the transfer.
2. Call your bank if money came out of your account, and tell them it was a scam.
3. Report it at ReportFraud.ftc.gov and to the FBI at ic3.gov. Keep your receipts.
4. Be careful of anyone who calls offering to get it back for a fee. That's a second scam.

Help a parent spot it

Bitcoin ATM scams work because the caller sounds calm and in charge. Give the people you love one short rule they can hold onto: no one real ever sends you to a Bitcoin ATM. If someone does, hang up and call family.