Consumer advocates applauded a move by the Colorado state legislature to place guardrails on so-called cryptocurrency ATMs, as
scammers continue to turn to the machines to further their crimes
.
Last week, Gov. Jared Polis signed a new law effective next year that creates a daily limit of $2,000 for new cryptocurrency ATM users. It also requires the machines to provide a receipt. The law requires the owner of a virtual currency kiosk to refund a new user’s first transaction if the money is transmitted to a wallet outside the United States and the user contacts the company and law enforcement with proof that the transaction was fraudulent.
“The amount of fraud that is happening via these crypto ATM machines is huge,” said Amy Nofziger, director of victim support for AARP’s Fraud Watch Network. “We’re hearing it across the country, but it’s really affecting Colorado consumers.”
Nofziger told the story of woman in Las Vegas who fed $80,000 into one of the machines connected to a scam, while clerks at the store watched.
“They were watching her, and they felt bad because, like she started to hunch over because she was getting so tired that they brought her a chair to sit down to feed the rest of the money in,” she said.
The limits passed by the legislature won’t necessarily stop people from becoming victim to scams, but they “stop the bleeding,” Nofziger said.
Scammers have increasingly turned to the machines as a quick and effective way to profit off their victims. Oftentimes, cryptocurrency transactions are difficult for law enforcement to track – making it easier to get money out of the United States quickly.
Nofziger said the consumer protections in the bill are only part of the solution. She hopes the legislation itself starts a conversation in households about scams.
“If you receive any phone call, text, email or communication from anyone saying that you need to go to a crypto ATM machine and pay a fine, a debt, something, it’s 100% a scam,” she said.
Protect yourself
Protect your phone:
Turn on biometric identification (either fingerprint or facial ID) to stop someone who shouldn’t have access to your phone from getting in. The AARP also recommends setting your phone to send unknown phone numbers to voicemail.
Never click on links in text messages and if you think a message may be valid, seek out a legitimate phone number for the company. (If it’s your credit card or bank, check the back of your card.)
Protect your credit:
It’s a good idea to check your credit report frequently to make sure there is no unusual activity. You can also freeze your credit report with the three credit bureaus to ensure no one without access can open an account. It’s easy to unfreeze the reports if you need to make a big purchase.
Protect your computer:
If your financial websites allow it, opt for two factor authentication, meaning you can only access your accounts if you have access to your phone and can enter a code sent to you. And consider signing up for an antivirus software.
The AARP has more tips here
.
Steve Staeger is the consumer investigator at 9NEWS. Send tips to Steve On Your Side
by email
.
