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Mississippians are urged to be on the lookout for scams involving Bitcoin ATM machines.
Secretary of State Michael Watson said Wednesday that these scams are on the rise. A Bitcoin ATM, also known as a Crypto ATM, is an electronic kiosk designed to facilitate buying cryptocurrencies using any financial transaction card, including cash or debit cards. The machines have the appearance of traditional ATMs and are located in convenience stores, malls, and other high-traffic areas.
Consumers can deposit money into the ATM, which then charges a fee, transfers the money into cryptocurrency, and puts it into an electronic wallet. The consumer provides the address of the wallet. While the machines themselves are legitimate, criminals have intervened to steal people’s money. Scammers typically abuse Bitcoin ATMs by coercing victims into depositing cash into the machines, which is then converted to cryptocurrency and sent to a crypto wallet controlled by the scammer, not the user.
“Our office has continued to see an uptick in securities-related scams, and we encourage Mississippians to exercise caution when investing hard-earned dollars. With the ever-changing landscape of technology, including cryptocurrency and Bitcoin, we must remain vigilant,” Watson said.
Watson’s office offered the following tips to protect Mississippians from potential scams involving cryptocurrency:
- Never click on links or respond directly to unexpected calls, messages, or computer pop-ups
- If you think it could be legitimate, contact the company or agency directly through its official phone number or website instead of the link provided.
- Slow down
- Scammers want to rush consumers. Before making hasty decisions, speak with someone you trust or call the Secretary of State’s office.
- Never withdraw cash in response to an unexpected call or message
- A trusted source will never make that request.
The public is encouraged to remain cautious if a stranger says that information is a secret or cannot be shared with anyone. This is always a red flag because scammers use this method to isolate individuals from trusted resources. If an individual claims to be a financial broker or advisor, Mississippians should always verify that person’s status by contacting the Secretary of State’s Office or using the agency’s online search tool.