Albuquerque bans crypto ATMs amid rising scam complaints
The city of Albuquerque has enacted a ban on cryptocurrency ATMs, a decision taken by city councilors to combat increasing instances of fraud involving these machines.
Under the new ordinance, the installation and operation of virtual-currency ATMs are now illegal within city limits.
Officials revealed that over 100 scams utilizing crypto ATMs were reported across New Mexico last year, leading to an estimated loss of around $2.2 million in total.
One notable case involved local resident Judy Hartmann-Ortiz, who claimed she lost her life savings of $32,000. Scammers had impersonated representatives from Apple and Wells Fargo, convincing her that her bank account had been compromised.
“I was scared that I might lose everything,” Hartmann-Ortiz recalled. “I believed what they were telling me.”
The scammers kept her anxious and isolated, dragging the conversation over approximately 13 hours across two days, urging her to withdraw her savings and deposit the cash into Bitcoin ATMs for safety.
“Honestly, I didn’t have any rational thought left after just 20 minutes of talking to them,” she reflected.
Hartmann-Ortiz believes that a conversation with a trusted friend might have saved her from this financial disaster.
“If you get a call or any sort of solicitation, wait until you talk it over with someone you trust,” she advised.
In a show of community support, people raised over $14,000 to help her recover some of her losses.
FBI alerts about urgency tactics used by scammers
The FBI has noted that cryptocurrency-related scams can take various forms, including romance scams and instances of impersonation. Scammers often create a sense of urgency, pressuring victims to withdraw cash and deposit it into a crypto ATM.
“These scammers exploit urgency effectively,” warned FBI Special Agent Tyler Derderian. “If there’s a push to act quickly, be cautious.”
He also pointed out that cryptocurrency transactions are fast and often irretrievable, complicating the process for recovering lost funds.
“Once those transfers are made, they are final very quickly, which makes it hard for authorities to trace and recover money,” he explained.
Tips for avoiding crypto scams
The FBI has provided several recommendations to help individuals safeguard themselves from potential scams:
- Consider immediate pressure to act as a significant warning.
- Verify the identity of anyone who contacts you independently.
- Consult a trusted individual before withdrawing or transferring any money.
- Be skeptical of anyone requesting payment via cryptocurrency.
- Remember that law enforcement agencies will never ask for payments in cryptocurrency.
- Question why a payment is needed in cryptocurrency rather than through traditional methods.
- Keep personal or financial information private from unsolicited callers.
If you suspect you have been a victim of fraud, you can report it to the FBI by calling 1-800-CALL-FBI or using their online tips and Internet Crime Complaint Center resources.
