Consider the following message making its way into your inbox:
“URGENT! Your bank account has been compromised. To secure the funds, withdraw $40,000.00 in cash from your bank and bring it to this very specific location for deposit into a Bitcoin ATM. Don’t tell your Bank what you plan on doing with the cash, and if they ask, tell them you are doing renovations in your kitchen. Do this now to avoid all your money being stolen and your social security number being leaked on the dark web. Otherwise, your identity may be compromised.”
If this doesn’t sound familiar to you at all, that’s a good thing. If it does sound familiar but utterly ridiculous, that’s good too. This is what a Bitcoin Scam looks like. Whether it’s foreign or familiar to you, the more diligence and awareness we can create for all of our banking customers, the better!
What Exactly is a Bitcoin Machine?
Bitcoin machines are becoming increasingly popular at local stores and gas stations. They offer quick and private transactions for the purchase and exchange of Bitcoins, similar to how an ATM works. Scammers convert cash into cryptocurrency, giving themselves immediate access to funds that are irretrievable.
How the Scam Works
In Bitcoin scams, fraudsters will often contact you by phone, email or text message. They will often direct you to a specific ATM machine and provide a QR code linked to their own digital wallet. Meanwhile, behind the scenes, they gather your personal information.
Common scam language includes:
- “There’s a problem with your account,” delivered with urgency.
- Instructions to withdraw large sums of money from your bank and deposit them into a machine to “protect your funds from identity theft.”
Victims are told that depositing money into a Bitcoin machine will “secure” their funds — often referring to their entire life savings — from theft or loss. This couldn’t be further from the truth.
As someone working in the banking industry, I’ve seen plenty of scam emails warning victims that their “Social Security number is on the dark web,” their “Amazon account has been hacked,” “new spyware or security software needs to be installed on their computer,” and, of course, that “there have been unauthorized transactions on your bank account.”
Why Scammers Use These Tactics
Scammers are professionals who know exactly what to say and when to say it in order to gain access to your funds. Some of the most successful scams are those which present a problem that never existed and provide you with the solution all in one unsuspecting contact.
Bitcoin Machine scammers are more likely to target elderly individuals, people with large account balances, and those who are in a vulnerable state, including recent victims of loss or grief. The rely on panic and confusion to prevent clear thinking, using urgent language — disguised as concern for your safety — in order to gain control of your finances.
According to the Federal Trade Commission, over 65 million dollars have been lost to Bitcoin machine scams in the first half of 2024 alone, and the number is only rising. So, what can you do to avoid becoming a victim?
Safety Tips: What to Do If You Receive a Suspicious Message
I always say: Whether it’s a text, email, paper mail, or phone call you weren’t expecting, don’t force yourself to create a probable explanation for why you might be receiving it. Don’t answer, hang up, don’t click links, do not give out any personal information, and do not allow yourself to be transferred by someone on the other line.
Most importantly, don’t panic! Instead, dial the trusted phone number for your bank that you’ve always used.
Our Commitment at Saco & Biddeford Savings
We’re dedicated to recognizing and stopping these scams before they happen. We’re here to explain the situation, help you file a police report, and contact the Federal Trade Commission (FTC), when necessary.
