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The Nevada Secretary of State’s Office is urging people to take a closer look before sending money through cryptocurrency ATMs as reports of related scams continue to grow.
The warning follows an increase in cases of fraud tied to these machines, which are often used for quick and anonymous transactions.
“Cryptocurrency continues to gain popularity for its accessibility, privacy, and other advantages, but bad actors are taking advantage of the technology. Crypto transactions are designed to be anonymous and instantaneous, making it hard for the fraudster to be tracked and the losses to be recovered,” Secretary of State Francisco Aguilar said. “Scammers will contact people with promises of a great investment with fast returns and limited risk. Remember: If it sounds too good to be true, it probably is.”
Federal Trade Commission data shows consumers reported more than $110 million in losses to scams involving Bitcoin ATMs in 2023.
According to the Secretary of State’s Office, most Bitcoin ATMs do not limit the amount of money a person can deposit, do not verify the identities of either party involved in a crypto transaction, and do not offer fraud prevention or reimbursement policies.
State officials said that the combination makes it easy for scammers to push people into sending large amounts of money with little chance of getting it back.
Guidance attached from the North American Securities Administrators Association outlines how these machines work and offers tips on preventing fraud.
The Secretary of State’s Office also shared steps people can take to protect themselves, including slowing down before sending money through a crypto ATM. Officials said scammers often pressure people to act quickly.
They also recommend never clicking unexpected links or responding to surprise calls, messages, or computer pop-ups, advising people to delete and report them instead.
People are urged not to withdraw cash because of an unexpected message, since only scammers will make that demand.
Officials added that no legitimate business or government agency will tell someone to use a Bitcoin ATM to protect money, fix a problem, or join an investment, and that anyone who asks is a scammer.
People looking to invest are encouraged to confirm licenses before proceeding. Individuals and companies conducting securities business in Nevada are required to be licensed, and checks can be done by calling the Secretary of State’s Securities Division at 702-486-2440 or by searching online through state resources.
The office also warned about scammers using AI-generated messages to impersonate family or friends and urged people to confirm any urgent request by establishing a family password or phrase.
The Secretary of State’s Office encourages anyone who believes they are a victim of investment fraud to report it.
The statewide securities restitution fund created by Senate Bill 76 offers financial assistance to victims of investment fraud, and more information is available through the Secretary of State’s Office.