Scammers love cryptocurrency, and they love stealing it through cryptocurrency ATMs.
Cryptocurrency ATMs are really dangerous because there are no transaction limits.
Even scarier? Once you send money to someone, there is virtually no way to recover it.
The good news is some states like Rhode Island are implementing new consumer protections, like automatic refunds for fraud victims.
Bentley University professor and creator of scamicide.com Steve Weisman says Rhode Island isn’t the only state taking action.
“These crypto ATMS – on the one hand, they’re entirely legitimate,” says Weisman. “On the other hand, the company Athena owns about 4,000 Bitcoin ATMs around the country, and when they first put them in to Washington, D.C., within the first six months, 93% of the transactions were scams, were fraudulent.”
Making matters worse, Weisman said Athena Bitcoin then refused to help or refund fraud victims.
“Despite the fact that Athena takes a 26% markup, which they got paid off of a scam, which they could have returned,” said Weisman.
In response, Weisman says the District of Columbia Attorney General has filed a lawsuit against Athena Bitcoin.
He says a similar lawsuit was also filed in Iowa.
Other state like Rhode Island are putting consumer protection laws in place, creating transaction limits, as well as refunds for fraud victims.
Right now, there are no statewide cryptocurrency ATM laws in Massachusetts. However, a number of cities have banned them.
Bottom line: One of the easiest ways to avoid being scammed is to stay away from crypto ATMs.
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Weisman says no legitimate agency or business will ever require payment through one of these machines.