{"id":8250,"date":"2025-11-01T07:55:58","date_gmt":"2025-11-01T07:55:58","guid":{"rendered":"https:\/\/www.jubi24.com\/?p=8250"},"modified":"2025-11-01T07:55:59","modified_gmt":"2025-11-01T07:55:59","slug":"bitcoin-atms-enable-cryptocurrency-scams-federal-prosecutor-alleges","status":"publish","type":"post","link":"https:\/\/www.jubi24.com\/?p=8250","title":{"rendered":"Bitcoin ATMs enable cryptocurrency scams, federal prosecutor alleges"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div id=\"\">\n    Diane Reynolds said she was caught off guard when someone contacted the Maryland retiree online and said access to her computer had been blocked for safety reasons.\u00a0<\/p>\n<p>&#8220;There was a voice message that was coming on with this that said, &#8216;Don&#8217;t turn your computer on, don&#8217;t turn your computer off,'&#8221; she told CBS News.\u00a0<\/p>\n<p>Reynolds was also instructed to call a phone number she was led to believe would provide her with tech support. Instead, she was connected to a\u00a0<span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/bitcoin-seizure-chen-zhi-pam-bondi-cambodia\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">scam artist<\/a><\/span>\u00a0who claimed that hackers had obtained access to her bank account. The only way to protect her money was to convert the funds into bitcoin, the person told Reynolds.<\/p>\n<p>She withdrew her entire bank account balance, which totaled $13,100, and followed the scammer&#8217;s directions to go to a bitcoin ATM at a nearby gas station. The ATM was operated by Athena Bitcoin, which has more than 4,000 such terminals across the U.S.\u00a0<\/p>\n<p>Washington, D.C., Attorney General Brian Schwalb said such incidents highlight the surge in cryptocurrency scams linked to bitcoin ATM providers, resulting in the theft of millions of dollars.<\/p>\n<p>&#8220;Bitcoin ATMs are a tool that scammers, that criminals, are using to separate people, including D.C. residents, from their hard-earned money,&#8221; Schwalb told CBS News. &#8220;Athena, as a bitcoin operator, knows that its kiosks are being used by this element, and yet [has] failed to put proper anti-fraud prevention systems in place to keep it from happening.&#8221;<\/p>\n<p>He added, &#8220;What makes it worse is they are profiting from this because they&#8217;re charging very substantial fees.&#8221;<\/p>\n<p>Schwalb in September filed a <a href=\"https:\/\/oag.dc.gov\/sites\/default\/files\/2025-09\/Athena%20Complaint.pdf\" target=\"_blank\" rel=\"nofollow noopener\">lawsuit<\/a> against Athena, alleging that it charges &#8220;undisclosed fees on deposits that it knows are often the result of scams, and for failing to implement adequate anti-fraud measures.&#8221;<\/p>\n<p>In a statement to CBS News, Athena Bitcoin said it &#8220;strongly disagrees with the allegations&#8221; and that it will contest the charges in court.<\/p>\n<p>&#8220;We employ aggressive safety protocols to protect the financial interests of our customers. &#8230;Our kiosks employ multiple safeguards, from prominent warnings and daily transaction limits to five separate verification screens designed to stop coerced transactions,&#8221; the company said.\u00a0<\/p>\n<p>Reynolds is also suing Athena Bitcoin. Her attorney, Vaught Stewart, accused the company of &#8220;not just allowing the fraud to happen \u2014 they&#8217;re profiting from it.&#8221;\u00a0<\/p>\n<p>In Washington, D.C., Athena Bitcoin charged fees of up to 26% per transaction, while 93% of all deposits made through the company&#8217;s ATMs are linked to scams, Schwalb alleged in his suit.\u00a0<\/p>\n<p>\u00a0For her part, Reynolds wants to help others avoid losing their savings. &#8220;Now I&#8217;m an advocate for just telling people this is real,&#8221; she said. &#8220;Be aware.&#8221;<\/p>\n<p>Financial scams connected to bitcoin ATMs <span class=\"link\"><a href=\"https:\/\/www.cbsnews.com\/news\/bitcoin-atm-scams-ftc-cryptcurrency-fraud\/\" target=\"_blank\" data-invalid-url-rewritten-http=\"\">are on the rise<\/a><\/span>, according to the Federal Trade Commission.\u00a0<\/p>\n<p>The Better Business Bureau, which ranks crypto-related fraud as one of the most common types of financial scams, notes that fraudsters tend to target the senior population.\u00a0<\/p>\n<p>Claims from an unknown source that your computer has been hacked is one major tip-off that someone is trying to swindle you, according to the organization.\u00a0<\/p>\n<section class=\"content__body--footer\">\n<p class=\"content__meta--editors\">\n      Edited by<\/p>\n<p>                                  <a href=\"https:\/\/www.cbsnews.com\/team\/alain-sherter\/\" class=\"byline__author__link\" data-invalid-url-rewritten-http=\"\">Alain  Sherter<\/a>\n                      <\/p>\n<\/section>\n<p>  <!-- data-recirc-source=\"queryly\" --><\/p>\n<aside class=\"component list recirculation component--type-recirculation \">\n<h3 class=\"component__title\">More from CBS News<\/h3>\n<\/aside>\n<section class=\"content__body--footer\">\n      <!-- tags --><\/p>\n<section class=\"content__tags\">\n<\/section>\n<\/section><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.cbsnews.com\/news\/bitcoin-atm-scams-athena-lawsuit\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Diane Reynolds said she was caught off guard when someone contacted the Maryland retiree online and said access to her computer had been blocked for safety reasons.\u00a0 &#8220;There was a voice message that was coming on with this that said, &#8216;Don&#8217;t turn your computer on, don&#8217;t turn your computer off,&#8217;&#8221; she told CBS News.\u00a0 Reynolds &#8230; <a title=\"Bitcoin ATMs enable cryptocurrency scams, federal prosecutor alleges\" class=\"read-more\" href=\"https:\/\/www.jubi24.com\/?p=8250\" aria-label=\"Read more about Bitcoin ATMs enable cryptocurrency scams, federal prosecutor alleges\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":8251,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-8250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/11\/Bitcoin-ATMs-enable-cryptocurrency-scams-federal-prosecutor-alleges.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/8250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8250"}],"version-history":[{"count":1,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/8250\/revisions"}],"predecessor-version":[{"id":8252,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/8250\/revisions\/8252"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/media\/8251"}],"wp:attachment":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}