Federal prosecutors are trying to recover about $47,000 in cryptocurrency tied to a scam that duped five victims into funneling cash through crypto ATMs. The scam involved tech support fraud and government impersonation, with victims directed to withdraw bank funds and deposit them at Bitcoin Depot ATMs.
One victim from Ware, Massachusetts, was targeted after her computer froze and showed a pop-up urging her to call a fake support line. The scammer convinced her that her bank account was compromised and instructed her to send money to the "government" for protection. The victim followed orders and deposited cash at a Ludlow gas station crypto ATM. Authorities tracked those funds to a single cryptocurrency wallet and seized them in March. They identified four more victims connected to the same wallet.
Legislators Eye Crypto ATM Fraud Protections
This wave of crypto ATM scams has caught the attention of lawmakers. The bipartisan Stop Crypto ATM Scams Act was introduced in June but has not yet become law. It proposes daily and overall deposit limits for new customers, mandatory fraud warnings, and stronger anti-money laundering rules for crypto ATM operators. FBI data shows Americans lost more than $333 million to similar scams, highlighting the urgent need for regulation.
This material is for informational purposes and does not constitute financial advice.
