DES MOINES, Iowa — Cryptocurrency ATMs, also known as Bitcoin ATMs, are increasingly being used in scams, with Americans losing over $100 million annually according to the Federal Trade Commission.
The Iowa Department of Insurance and Financial Services warns that scammers use these machines to pressure individuals into transferring cash to digital wallets they control. James Johnson, Superintendent of Banking with the department, explained that scams often begin through emails, texts, or calls from strangers posing as officials.
Victims are urged to withdraw cash and use a cryptocurrency ATM, entering the scammer’s wallet address instead of their own. Once transferred, the cryptocurrency is quickly moved, making recovery nearly impossible.
To protect against such scams, the department advises never responding to unexpected messages or calls, slowing down to verify information, and avoiding cash withdrawals prompted by unsolicited contacts. They also stress that legitimate businesses do not require the use of cryptocurrency ATMs.
In Iowa, ATM operators must issue refunds for fraudulent transactions if reported within 90 days, with proof such as a police report.