FTC Warns Consumer Against Crypto Scams Involving Crypto ATMs

• On Monday, the U.S. Federal Trade Commission (FTC) cautioned consumers about the scams related to cryptocurrency ATMs, which, as the FTC describes, involves a scammer asking for payments in cryptocurrency.

• The FTC warned against scammers and said impersonators might address themselves as someone from the government, law enforcement, a price promotion company, or even your loved ones.

• Scammers guide the victim to the store with a cryptocurrency ATM and ask them to buy the cryptocurrency. After which, they send a QR code that will empty your digital wallet after you scan it.

The U.S.Federal Trade Commission or FTC, issuing a warning on Monday, has alerted consumers against the scams involving cryptocurrency ATMs. Cristina Miranda, belonging to TC’s consumer and business education division, released a statement that said the scammers are going around demanding crypto payments from people.

Further, the note reads that the scam includes a QR Code and a run to a store guided by the con on the call to pay them money through a cryptocurrency ATM.

The impersonator might pretend to be a government official or an employee from a local utility company, warns the FTC. Some scammers might go a step further, call themselves your loved one or astray you saying that you have won prizes in a jackpot. Until you transfer their money, they will stay on the call.

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The impersonators can also ask to withdraw money from your investments, banks or even retirement accounts, cautioned FTC.

In their step by step guide to get the money, the first step includes directing the person to go to a cryptocurrency store and then asking to purchase cryptocurrency. The person then will receive a QR code with the address mentioned in it.

After you have bought the cryptocurrency, they instruct you to scan the code, which they say will transfer the money to them, but in reality, all your money would be lost, emphasizing said FTC.

The commission also cleared that no government official, utility company or lottery company will ever ask you to pay in cryptocurrency.

Further adding, the agency said if someone does that, then there should be no doubt that it’s a scam, especially if you seem not to know the person on the phone directing you with the steps mentioned above.