Crypto ATMs are becoming a popular method for fraudulent crypto payments: FBI

The FBI claims that alongside the usual payment methods such as wire transfers and prepaid cards, crypto ATMs are also becoming a leading tool for crypto investment fraudsters.

The US Federal Bureau of Investigation (FBI) Miami Field Office has warned that crypto ATMs are becoming a popular method used by scammers to receive funds from defrauded victims.

The information came to light as part of an October 3 public warning about "pig butcher scams", where scammers pose as long-lost friends or potential romantic partners to extort money from the victims.

The scammers "fatten" their victims by showing them a supposedly genuine interest in gaining their trust, then gradually introduce investment discussions into the relationship.

In the public service announcement in cooperation with the Internet Crime Complaint Center (IC3), the FBI warned that victims of these crypto pig butcher scams usually have no chance of recovering their funds.

However, the FBI noted that it has noticed that scammers are increasingly tricking their victims into transferring funds through crypto ATMs, alongside more well-known methods such as wire transfers and prepaid cards, noting:

"Many victims report being told to make bank transfers to overseas accounts or buy large amounts of prepaid cards. The use of cryptocurrency and cryptocurrency ATMs is also an emerging payment method. Individual losses related to these schemes ranged from tens of thousands to millions of dollars."

The FBI noted that in “pig-cutting” scams, victims are “walked through an investment process” and “encouraged to make ongoing deposits by the fraudsters.”

"When victims attempt to cash out their investments, they are told that they have to pay additional income taxes or fees, causing them to lose additional funds."

Crypt ATMs have long been used by scammers who pose as public officials, law enforcement officers, or employees of local utility companies, and coerce victims into sending them payments on the pretext of paying bills...