BISMARCK, N.D. (KFYR) - We’ve all heard of money transfer scams, but there’s a new and scary twist that now involves cryptocurrency ATMs. Yes, they exist. The problem that few people have heard about is so bad that North Dakota lawmakers have passed legislation to protect you.
This is not your typical ATM machine; this is a cryptocurrency ATM. It converts real money into cryptocurrency. These machines are used to scam unsuspecting people. Scammers will contact someone and tell a potential victim to withdraw cash and deposit it into one of these kiosks. That money then goes into the scammer’s digital wallet. The victim will never get their cash back.
“In North Dakota alone, $6 million was lost, and so it’s really a growing trend,” revealed North Dakota AARP Associate Director Janelle Moos.
Moos helped create the legislation that Governor Kelly Armstrong signed into law this spring. It will require licenses for cryptocurrency ATMs, limit transactions to $2,000 and mandate warning labels on kiosks.
“There was no regulations. What we wanted to make sure was, at least at the very minimum, we would have these cryptocurrency ATM operators licensed in the state, so that we can start to track and make sure that they’re regulated, and again, putting some consumer protections in place,” said Moos.
There are several of those kiosks in stores throughout the state. We checked out a few of these places, and one of the store managers said she has stopped many people from being scammed. We also saw one kiosk with warnings about scammers.
North Dakota Bankers Association President and CEO Rick Clayburgh told us the types of calls or messages victims receive can run a wide range.
“In a way, the crypto ATMs have become the new Walmart gift cards. And so when someone is frauded out of money, they’re put into a pressured position, they’re told not to tell anyone,” said Clayburgh.
The new law takes effect on Aug. 1, and the hope is that the kiosks will be a lot harder to use by those trying to rip off innocent people.
Moos recommends you report anything suspicious to the Fraud Watch Network. Their number is 1-877-908-366.
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