Bitcoin ATM scams: how to recognise and avoid them (CryptoScam #6)

The most common Bitcoin ATM scam doesn't happen at the machine but on the phone: the scammer poses as a police officer, banker, official or “technical support” and persuades the victim to deposit cash into a Bitcoin ATM and send Bitcoin to the address in a QR code they send. The money is then gone irreversibly. The rule is simple: no legitimate party will ever ask you to pay via a Bitcoin ATM. In the sixth episode of our CryptoScam video series (in Czech), we show how these scams play out and how to avoid them.

Summary

• A Bitcoin transaction cannot be reversed – what you send, you won't get back.
• The police, a bank or a government office will never want to “save your money” by having you deposit it into a Bitcoin ATM.
• Never send Bitcoin to an address someone else gave you unless you know them personally and know what you are paying for.
• Use machines from well-known operators and check the fees in advance.

How Bitcoin ATM scams play out

A Bitcoin ATM is just a tool – the scam takes place outside it. Scammers exploit the fact that a Bitcoin payment is fast and irreversible. The most common scenarios:

• Fake police officer or banker – calls to say your account has been compromised and the money needs to be “moved to a safe account”. They send a QR code and direct you to the nearest Bitcoin ATM.
• Fake technical support – a virus warning with a phone number pops up on your computer. The “technician” then wants payment for the repair in Bitcoin.
• Fake investments – an “adviser” promises high returns and wants a deposit via a Bitcoin ATM. The returns you see on their website are not real.
• Romance scam – an online acquaintance who after a while needs money for a plane ticket, medical treatment or customs duty.
• Fake services or goods – the seller wants payment only in Bitcoin via the machine, and the goods never arrive.

Less often, illegitimate or tampered machines also appear, designed to target your money or personal data.

What to watch out for at a Bitcoin ATM

• Unusually high fees – the difference between the machine's rate and the market rate should be shown on the display before you confirm.
• Requests for unnecessary personal data – identity verification for larger amounts is normal, but the machine doesn't need your passwords or bank logins.
• Suspicious location – a machine in an unprotected place with no operator contact.
• Someone is guiding you over the phone – if you are standing at the machine with a phone to your ear and someone is dictating what to do, stop immediately.

How to avoid scams

1. Use machines from reputable operators with listed contact details.
2. Check the fees and conditions in advance.
3. Only send Bitcoin to your own wallet, or for goods or a service you have verified yourself.
4. Never send money via a Bitcoin ATM to strangers – not even on the basis of a phone call, e-mail or message.
5. If you are suspicious, end the call and ring your bank's official number yourself. If you have already sent the money, contact the police.

Where to buy or sell Bitcoin calmly and safely is described in our article The Bitcoin ATM at PC Praha.

What next

• Fake software wallets – how scammers steal recovery phrases.
• Why to avoid cloud mining – another common crypto scam.