SIOUX FALLS, S.D.– As part of what it is calling a nationwide effort to educate and inform both Law Enforcement and consumers, the ATM Industry Association (ATMIA) has released a handout addressing cryptocurrency fraud schemes.
The two-page document includes brief descriptions of six different types of fraud schemes and recommendations for law enforcement best practices when a crypto ATM scam is suspected, the organization said.
“Although the vast majority (about 99%) of cryptocurrency transactions represent legitimate activity, some consumers are falling victim to clever scam artists,” ATMIA stated. “People who would never hand over a blank check or their credit card to a stranger, are tricked into completing a cryptocurrency transaction for one. And these tend to be the type of romance, investment, and merchandise scams that have been around for decades.”
Rapidly Growing Segment
The organization noted cryptocurrency ATMs are a rapidly growing segment of the self-service market, but as a rather new segment of the market the machines are also subject to “often confusing and inconsistent regulatory regimes.”
In response, the ATMIA said it created the ATM Cryptocurrency Deployers Advocacy Group to work towards reasonable regulation within a single federal agency.
“It is this group that recognized the need for consumer education and has produced the content released today,” the ATMIA said.
This new resource, which includes a list of six typical cryptocurrency fraud schemes, as well as suggested Law Enforcement best practices, is available for download from the ATMIA website.