Diane Reynolds said she was caught off guard when someone contacted the Maryland retiree online and told her access to her computer had been blocked for security reasons.
“There was a voicemail that said, ‘Don’t turn on your computer, don’t turn off your computer,'” she told CBS News.
Reynolds was also asked to call a phone number that she said would provide her with technical assistance. Instead, she was connected to a crook who claimed that hackers had gained access to his bank account. The only way to protect his money was to convert the funds to bitcoin, the person told Reynolds.
She withdrew her entire bank account balance of $13,100 and followed the scammer’s instructions to go to a Bitcoin ATM at a nearby gas station. The ATM was operated by Athena Bitcoin, which has more than 4,000 such terminals in the United States.
Washington Attorney General Brian Schwalb said such incidents highlight a surge in cryptocurrency scams linked to Bitcoin ATM providers, resulting in the theft of millions of dollars.
“Bitcoin ATMs are a tool that scammers and criminals use to separate people, including Washington DC residents, from their hard-earned money,” Schwalb told CBS News. “Athena, as a Bitcoin operator, knows that its kiosks are being used by this element, and yet (has not) failed to have appropriate anti-fraud prevention systems in place to prevent this from happening.”
He added: “What’s worse is that they take advantage of it because they charge very high fees. »
In September Schwalb filed a trial against Athena, alleging that it charges “undisclosed fees on deposits that it knows are often the result of scams, and for failing to implement adequate anti-fraud measures.”
In a statement to CBS News, Athena Bitcoin said it “strongly disagrees with the allegations” and will contest the accusations in court.
“We use aggressive security protocols to protect the financial interests of our customers. (…) Our kiosks employ multiple protection measures, from prominent warnings and daily transaction limits to five separate verification screens designed to stop forced transactions,” the company said.
Reynolds is also suing Athena Bitcoin. His lawyer, Vaught Stewart, accused the company of “not only allowing the fraud to occur, but profiting from it.”
In Washington, D.C., Athena Bitcoin charged fees of up to 26% per transaction, while 93% of all deposits made through the company’s ATMs are linked to scams, Schwalb alleged in his complaint.
For his part, Reynolds wants to help others avoid losing their savings. “Now I advocate just telling people it’s real,” she said. “Know.”
Financial Scams Related to Bitcoin ATMs are on the riseaccording to the Federal Trade Commission.
The Better Business Bureau, which lists crypto fraud among the most common types of financial scams, notes that fraudsters tend to target the older population.
According to the organization, claims from an unknown source that your computer has been hacked are a major indicator that someone is trying to scam you.
