NYPD Enlists Bitcoin ATMs to Help Strangle Phone Scams
By CCN: Crypto-oriented phone scams are alive and well across the country. One sneaky tactic involves posing as law enforcement, a crime in and of itself, and then blackmailing victims into paying Bitcoin to avoid legal troubles.
Following a case of precisely that in Berkeley, California, New York City police are actively pursuing a broader strategy to combat such scams, and it involves participation from companies that operate Bitcoin ATMs.
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Bitcoin ATM providers are helping the NYPD crack down on crypto scams. | Source: Shutterstock
According to the city’s website, police are working with Bitcoin ATM providers “regarding their electronic scam messaging and texts and placing NYPD Scam Alert Cards at stores where machines are located.”
Typically, the scam goes like this:
“Victims are contacted by the ‘Social Security Administration’ and advised that their Social Security number has been used to open numerous accounts or is involved in some sort of drug trafficking or money laundering operation. To protect their money or to avoid being arrested, victims have to send various sums of money to help resolve the situation. The most common forms of payment requested are prepaid gift cards, Bitcoin and bank wire transfers.”
“In many of the cases, a person posing as a ‘Police Officer’ or ‘Law Enforcement Official’ will intimidate or threaten victims to gain compliance. Victims are told that they will be arrested and/or their assets will be frozen. Scammers have claimed to be NYPD, FBI, NYS Police, Texas PD and LAPD.”
