Bitcoin ATM Scam Warning Issued by Kenosha Police to Residents

The Kenosha Police Department is currently investigating two alleged Bitcoin ATM scams and to that effect, the authorities have issued a warning to residents to get them more aware and cautious

Bitcoin ATMs: New Scammer Tool Alert

It looks like scammers in the beautiful city of Kenosha are now exploring a new technique to defraud unsuspecting residents of their hard-earned crypto assets. This time around, the bad actors go around notifying people on their electronic devices about a compromise of their identities. They pose in the guise of helping salvage the situation.

The scammers compel the already-deceived individual to transfer his assets to a “federal box” before their bank accounts get frozen from the compromise. Two people were said to have received such alerts from the scammers. They were asked to deposit their funds into a Bitcoin ATM. Afterward, a QR code was sent to their electronic devices.

Scanning this QR code automatically sends the Bitcoin that had been bought from the Bitcoin ATM to the wallet of the scammers. The criminals did not stop there, instead they asked their victims to purchase prepaid credit cards and revert the codes. Police in Kenosha are concerned that the scam may spread like wildfire considering that there are quite a number of Bitcoin ATMs in the region, hence the warning to residents.

“Victims must know that government agencies will never require the purchase of items or the depositing of money to prevent a particular action, such as freezing assets,” Kenosha Police Department said in the released statement.

Residents of the Wisconsin city are advised to contact a designated helpline in the case of a fraud. In addition, people have been urged to reach out to their friends, family or the police, if they suspect any unseemly activity.

US Authorities on the Lookout for Scammers 

While scammers keep diversifying their strategies and techniques, the United States authorities have remained on top of their game in terms of curtailing the activities of these bad actors. The Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have levied enforcement actions against a number of these criminals in the last few months.

Coingape recently reported a settlement deal between the SEC and 51-year-old Brian Sewell who ran an online crypto course but ended up cajoling students into investing in a hedge fund he planned to launch. Sewell’s plans turned out as a facade and this attracted fraud charges from the SEC.

Similarly, the DoJ indicted David Gilbert Saffron, an Australian national, and Vincent Anthony Mazzotta Jr., a resident of Los Angeles, for their alleged roles in a sophisticated $25 million Ponzi scheme.

Even with the commitment of these law enforcement agencies, users of crypto platforms are still advised to remain vigilant.