Police warn residents about Bitcoin ATM scams
HAYS, Kan. – The Hays Police Department is warning residents about a rise in scams that trick people into sending money through Bitcoin Automated Teller Machines (BTMs). These scams, which often involve impersonating government officials or trusted organizations, have resulted in significant financial losses for victims across the country, including in Hays.
Chief of Police Don Scheibler emphasized that no legitimate government agency, law enforcement entity, or utility company would ever demand payment through a Bitcoin ATM, gift card, or wire transfer. If someone tries to convince you to use one of these methods to pay fines, resolve issues, or protect your money, it is a scam. Scheibler advised hanging up immediately and verifying the request through official channels.
Scammers typically reach out through unexpected phone calls, text messages, or emails, creating a sense of urgency and pressure. They may pose as IRS agents threatening arrest for unpaid taxes, law enforcement officials alleging involvement in money laundering, or tech support representatives warning of compromised bank accounts. The common denominator in these scams is the demand for immediate payment via a Bitcoin ATM, often providing specific locations and QR codes to facilitate fund transfers directly to the scammer’s digital wallet.
“These criminals exploit fear and urgency,” Scheibler noted. “They keep victims on the phone, preventing them from seeking advice, and pressure them into withdrawing large sums of cash. Once the cash is converted to cryptocurrency through a Bitcoin ATM, it becomes extremely difficult to retrieve.”
The financial impact of these scams is staggering. Nationwide, fraud losses related to Bitcoin ATMs have surged, multiplying nearly ten times between 2020 and 2023 and surpassing $65 million in the first half of 2024 alone. The average loss reported by individuals who fell victim to these BTMs was $10,000. Victims aged 60 and over bore the brunt of these losses, accounting for about $46 million, or 71%, of BTM-related losses in the first half of the year.
Cryptocurrency investment scams have also led to billions of dollars in annual losses. The challenge in recovering funds lies in the nature of cryptocurrency transactions. Once funds are sent through a Bitcoin ATM, the transaction is irreversible. The decentralized and often anonymous nature of blockchain technology, combined with the global reach of criminal networks, makes tracking and recovering stolen funds exceedingly difficult for law enforcement.
Scammers often disperse stolen cryptocurrency across multiple digital wallets to obscure their activities, complicating recovery efforts. Additionally, victims are often targeted by “recovery scams,” fraudulent services that promise to retrieve lost cryptocurrency for an upfront fee, only to defraud victims further.
The Hays Police Department advises residents to remain vigilant and follow essential prevention tips, including never responding to unsolicited calls, texts, or emails demanding immediate payment – especially involving Bitcoin ATMs, gift cards, or wire transfers. Always independently verify requests and take time to think and discuss the situation with a trusted person. Legitimate entities will never demand payment in cryptocurrency.
If you suspect you have been targeted by a Bitcoin ATM scam or any financial fraud, contact the Hays Police Department immediately. Reports can also be filed with the Federal Trade Commission at ReportFraud.ftc.gov and the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
