Statewide Push to Curb Bitcoin ATM Scams in North Carolina
WILMINGTON, NC (WWAY) — Cryptocurrency is hard to track, and that makes it a great marketplace for scammers.
Tuesday, Attorney General Jeff Jackson and Secretary of State Elaine Marshall visited the port city to announce a statewide effort to help people from being scammed when using Bitcoin ATMs.
Bitcoin kiosks are popping up across North Carolina, and officials say they are increasingly being used in scams that are costing victims millions of dollars.
Secretary of State Elaine Marshall reported the statistics from the FBI involving cryptocurrency related crime jumped nearly 1,300% from 2017 to 2023.
Marshall also reported for every one scam reported there are 64 unreported.
The scam typically starts with a phone call from an unfamiliar caller who claims to be someone else that is more trustworthy. They then urgently request a withdraw and give directions to the nearest Bitcoin kiosk.
Attorney General Jeff Jackson says the trend is alarming.
“The worst thing about this is the trend, last year was the worst year on record, the year before that was second, the year before that was third, it’s getting worse every year. Now that Bitcoin kiosks have exploded across the state, we are worried it’s going to accelerate,” Jackson said.
Jackson joined Secretary of State Elaine Marshall, AARP, local law enforcement and others to launch a statewide prevention initiative.
Marshall says one of their goals is to encourage businesses with crypto machines to post warning signs.
“Warning signs next to their machines. We want to encourage these businesses to speak up when they see something suspicious. Like an older adult trying to use the ATM while talking to someone on the phone,” Marshall explained.
Although anyone can fall victim to a scam, David Kirkman with AARP says seniors over the age of 65 remain the biggest targets.
“If the elder fraud industry were a corporation, it would be a worldwide mega corporation making hundreds of billions of dollars every year tax free and with very little infrastructure. They make all of this money almost for nothing,” Kirkman stated.
Willington Interim Police Chief Ralph Evangelous also urges people to take basic precautions.
“Delete, rip up, hang up. Don’t talk to anyone you don’t know, don’t open any emails you don’t know who they are from and don’t answer the phone if you don’t know who is calling you. If we do that, we can put a stop to this,” Evangelous said.
Marshall added a reminder to stay vigilant and cautious.
“And sometimes we don’t question the stuff that comes to us and we absolutely, to protect ourselves, need to question what somebody is advocating to us because crooks are out there all the time trying to get into our pocketbooks,” Marshall said.
Marshall adds to avoid scams firstly, slow down. Also, never click on links and report the messages. Never withdrawal cash to an unexpected call.
District Attorney Jason Smith also attended the press conference and asks people to educate their family and friends as well as report any activity. Smith adds that in the area, there has been a phone call scam about missing jury duty. He reminds us that law enforcement will not call and threaten your arrest if you miss jury duty.
Chris Smith from the New Hanover County Sheriff’s Office informs the community that no law enforcement agency, especially the Sheriff’s Office, will ever call asking you to solicit money or something of value.
If you have been a victim of a scam while using bitcoin ATMs, you can call 211 or contact your local law enforcement and submit a claim to the NC Secretary of State and the Consumer Protection Division.
A special ‘Summer Scam Jam’ will be released at AARP NCI on YouTube.
Consumer Alert: Beware of Getting Scammed on Bitcoin ATMs – NCDOJ
