Police say Troy woman was told to deposit $12,500 in Bitcoin ATM during scam

Residents of Troy, Michigan, have been warned about ongoing scams targeting victims through the use of Bitcoin ATMs. The Troy Police Department reported that a 79-year-old woman fell victim to a scam after receiving a message about charges on her Apple account. The victim was instructed to withdraw $12,500 from her bank account and deposit it into a Bitcoin ATM by a fake supervisor she was directed to speak to. Unfortunately, the money deposited into Bitcoin ATMs is nearly impossible to recover, making it an attractive method for criminals engaged in fraudulent activities.

Michigan Attorney General Dana Nessel issued a consumer alert to raise awareness about scammers using Bitcoin ATMs to defraud people. These scammers typically target older adults, posing as representatives from reputable companies like Apple or Google. The victims are told that their accounts have been compromised and instructed to withdraw cash, deposit it into Bitcoin ATMs, and then scan and send a receipt or QR code to the scammer.

Bitcoin ATMs lack the same level of safeguards as credit card transactions and bank transfers, making them an easy target for scammers. Nessel’s office provided the following tips to help residents avoid falling victim to these types of scams:

1. No legitimate company or government agency will ask you to deposit money into a Bitcoin ATM. If someone makes such a request, it’s a scam.
2. Beware of urgent requests. Scammers create a sense of urgency to prevent victims from questioning the request.
3. Do not trust caller ID. Fraudsters can manipulate phone numbers to make it seem like they are calling from a trusted source.
4. Avoid downloading unknown software or granting remote access to your devices, as this can compromise your personal information.
5. Speak to your bank before making large withdrawals. Seek advice if you are instructed to move money in an unusual way.
6. Report any suspected scams immediately to the Michigan Attorney General’s Consumer Protection Team and local law enforcement.

Residents who believe they have been targeted by a scam can contact the state’s consumer protection team at 517-335-7599 or submit a complaint online. It is crucial to stay vigilant and informed to protect oneself from falling victim to such fraudulent schemes. If something seems suspicious or too good to be true, it’s important to verify the legitimacy of the request before taking any action.