Warning to Iowans about a rise in cryptocurrency scams

(SBA) - Iowa Attorney General Brenna Bird today issued a warning to Iowans about a rise in cryptocurrency scams.

Click hear the testimony of an Iowan who was victim to a cryptocurrency scam

“Scammers are evil con artists who take advantage of good people, and they will not stop until they take everything you have,” said Attorney General Bird. “Remember to never send money to someone you met online. And if someone sends you to a cryptocurrency ATM, it’s a scam.”

One example is an Iowa woman who befriended a scammer on Facebook. The scammer tricked her over time into trusting him as they bonded over common interests such as music and art. Once they had established a friendship, the scammer asked the woman for money to help pay for a certificate he claimed he needed from Turkey to return to the United States. To help her supposed friend, the woman maxed out her credit card and sent more than $10,000 to the scammer through a Bitcoin ATM. She continued sending money, relying on the scammer’s promise that he would soon be home, but the scammer kept delaying. When the woman received a phone call from the Iowa Attorney General’s Office, she realized she was tied up in a scam.

What are Cryptocurrency ATMs?

Cryptocurrency ATMs look very similar to traditional ATMs. They allow an individual to purchase cryptocurrency like Bitcoin (often for higher fees than other places), but they are often exploited by scammers to trick people into sending money straight into a scammer’s account. Once that money is gone, it is almost impossible to get back. Cryptocurrency ATMs are often located in gas stations, convenience stores, and malls.

How Scammers Trick You:

• Scammers will connect with you through text, email, social media, dating apps, or phone calls.
• Scammers build a relationship with you to gain trust. They then abuse that trust and encourage you to make fake investments, lie about computer viruses, or impersonate government agencies such as the IRS or FBI.
• Scammers use aggressive tactics to pressure and manipulate you into sending money into their accounts through a cryptocurrency ATM.
• Scammers make the cash-to-crypto process easy, often talking with you on the phone until the money has been sent.

How to Protect Yourself from Cryptocurrency ATM Scams:

• Remember that if someone sends you to a cryptocurrency ATM, it’s a scam.
• Hang up or do not respond to any unsolicited call or message.
• Never provide personal information, such as your Social Security or bank-account number, or access to any financial accounts to someone you met online.
• Report suspicious activity to the Iowa Attorney General’s Office or local law enforcement.

If you or someone you know has been targeted by a cryptocurrency ATM scam, contact the Iowa Attorney General’s office at 888-777-4590 or file a complaint online: https://www.iowaattorneygeneral.gov/for-consumers/file-a-consumer-complaint.