Statewide Iowa (RI) – Automatic teller machines that are only for cryptocurrency transactions, also known as crypto or bitcoin ATMs, are popping up all over Iowa, and if you’re not careful using them, it could be a very expensive lesson.
James Johnson, superintendent of banking with the Iowa Department of Insurance, says investing in crypto is becoming very popular and there are nearly 400 bitcoin ATMs in the state now, including 25 just in Des Moines.
The Federal Trade Commission says consumers reported losing more than $100 million in crypto scams last year. Johnson says crooks are capitalizing on the accessibility of the ATMs, enticing Iowans into using the machines to transfer cash to digital wallets which the scammers control.
Johnson says it’s vital that Iowa consumers understand what cryptocurrency ATMs are, how the scams work, and what they can do to protect themselves.
The scams often start through chats, social media, emails, texts, computer pop-ups and phone calls from strangers. Johnson says scammers often pose as a government official who claims to be trying to help the victim transfer funds to keep them safe.
Johnson warns to never withdraw cash in response to an unexpected call or message, as only scammers will tell you to do that, and don’t believe anyone who says you need to use a crypto ATM to protect your money, fix a problem, or to get a great return on investment.
For more information, visit the Iowa Fraud Fighters website.
KIWA Staff Photo
