Data released by law enforcement agencies in Texas, USA, shows that residents of the state suffered a total financial loss of up to $56.8 million over the past year due to cryptocurrency ATM scams. According to incomplete statistics, approximately 1,200 Texas residents became victims of such scams.
Cryptocurrency ATM scams typically follow this modus operandi: fraudsters call victims, impersonating staff from government agencies or companies, and falsely claim that the victims are involved in legal issues or owe money. They then instruct victims to go to a cryptocurrency ATM, convert cash into cryptocurrency, and transfer it to a designated address. Due to the irreversible nature and partial anonymity of cryptocurrency transactions, recovering funds once transferred is extremely difficult.[PANews]