OKLAHOMA CITY (KFOR) - Oklahoma Attorney General Gentner Drummond's office on Tuesday, released a warning to Oklahomans about a rise in "Bitcoin ATMs" scams.
Drummond, says the scam is leaving victims with depleted bank accounts.
“Bitcoin ATMs” are virtual currency kiosks located in grocery stores, gas stations and malls. They look like traditional ATMs but they allow individuals to purchase and send virtual currencies such as Bitcoin, Ethereum and Tether. Scammers use a variety of tactics to convince victims, who are often elderly, to withdraw money from their bank account and deposit it into an unregulated, virtual currency kiosk.
One method currently being used in Oklahoma involves scammers convincing an individual that their bank is about to fail and persuading them to empty their account and deposit the funds into the kiosk. The virtual currency is then sent to the scammer’s crypto wallet via a transaction that typically cannot be reversed, according to the AG's office.
“It’s important for Oklahomans to stay on alert about virtual currency and other banking scams,” Drummond said. “Never pay anyone who demands an advance payment in cryptocurrency – only scammers demand this type of payment.”
Other types of scams the Attorney General office asks consumers to remain alert include:
To avoid falling victim to banking scams the AG's office recommends, do not pay anyone who asks for advance payment in the form of cryptocurrency, gift cards or money transfers.
Anyone who believes they may have been victimized by a banking scam should contact the Office of the Oklahoma Attorney General at consumerprotection@oag.ok.gov or 1-833-681-1895.