Iowa State Bank Reminds Consumers to
Be Cautious of Crypto ATM Scams

Iowa Attorney General Breanna Bird recently announced her office sued two cryptocurrency ATM companies – Bitcoin Depot and CoinFlip – after Iowans lost more than $20 million dollars in three years through scams involving these machines. With June being Elder Abuse Awareness Month, it is important to note these scams typically target those over age 60.

What are crypto ATM scams?

Crypto ATM scams occur when criminals trick someone into depositing cash into a cryptocurrency ATM. The scammers contact victims through social media, texts or phone calls. Then, these scammers use a fabricated, urgent scenario to convince victims to withdraw cash from their bank accounts and send it to the criminals using a crypto ATM. To ensure payment, the scammers may say the victim’s family is in danger or the victim will be arrested if they do not send the money. Some criminals tell victims they will get their money back, but cryptocurrency transactions are not reversible. Once the money is sent, it is gone. 

How can you protect yourself?

To avoid these scams, don’t respond to unexpected calls, texts or pop-ups on your phone. In addition, don’t click on links in unexpected messages. If scammers are claiming to be a part of an official government or business, hang up then contact the organization using information on its verified website.

In addition, bankers encourage consumers to create a family password or phrase. If the scammer claims to be a family member, ask for the code. This will allow you to know if you’re speaking to your family or an impostor.

Above all, remember to never withdraw cash and deposit it into a crypto ATM. 

As always, if you suspect fraud, contact your bank immediately at a number you know and trust -- not one supplied in a text or email message.

This message is provided as a courtesy of the Iowa Bankers Association in partnership with Iowa State Bank, Algona.