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Cryptocurrency ATMs and QR codes used for fraud, reports the FBI

Cryptocurrency ATMs

Cyberfraud victims are increasingly being asked to pay through Quick Response (QR) code and cryptocurrency ATMs. This makes recovery of payment impossible.

The FBI has seen an increase in scammers directing victims to use physical cryptocurrency ATMs and digital QR codes to complete payment transactions,” the federal law enforcement agency said.

These criminals use QR codes & cryptocurrency for fraudulent schemes, schemes that entail impersonation in which the scammer pretends to be a government, law enforcement, a legal office, or utility company representative.

The use of such tactics is also seen in romance schemes. These romance schemes entail the fraudster connecting with the victim online before requesting a payment.

The criminals seek money as a favour or a non-existent fine, depending on the scheme. Cryptocurrency’s decentralized nature creates challenges that make it difficult to recover. Once a victim makes the payment, the recipient instantly owns the cryptocurrency, and often immediately transfers the funds into an account overseas,” the FBI added.

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“This differs from traditional bank transfers or wires where a payment transaction can remain pending for one to two days before settlement. It can also make law enforcement’s recovery of the funds difficult and can leave many victims with a financial loss.”

The FBI shared the following tips to help those targeted in such scams protect themselves:

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