Crypto kiosks linked to $56.8M in losses for Texans, lawmakers examine scams
Scammers trick people into using cryptocurrency kiosks to send money that cannot be recovered. These ATM-like machines are positioned in stores and gas stations, and victims are often directed there by someone posing as a legitimate authority or romance interest.
How it works
A scammer contacts the victim by phone, text, or online and creates urgency or trust, typically impersonating a government agency, tech support, romantic interest, or investment advisor. The scammer instructs the victim to go to a nearby cryptocurrency kiosk, deposit cash, and send the cryptocurrency to a wallet controlled by the scammer. Once sent, the transaction is permanent and untraceable.
Red flags to watch for
- Someone you do not know asks you to buy cryptocurrency
- Pressure to act quickly or keep the transaction secret
- Caller claims to be from IRS, FBI, or a bank but contacted you first
- Online romantic interest asks for money or suggests cryptocurrency investment
- Instructions to go to a specific kiosk location in a store or gas station
What to do
Do not use a cryptocurrency kiosk on anyone else's instruction, no matter who they claim to be. Hang up and call the alleged agency directly using the number on its official website or your bank statement. If you have already sent cryptocurrency, report it immediately to the FBI at ic3.gov and to the FTC at reportfraud.ftc.gov, and contact local law enforcement. Legitimate agencies and companies never ask you to buy or send cryptocurrency.
If this reached you
Source: KXAN NBC Austin . Scam Sentinel summarizes this news report in plain language; it is a decision aid, not a guarantee.