With introduction of cryptocurrencies in our lives, they became instrument for funds transfer not only among users with legitimate purposes, but also for fraudulent activity. Usually, the victims are the less knowledgeable people, who are instructed by scammers what to do, and who send large amounts by using bitcoin ATM’s. The advantage of using cryptocurrencies by scammers is because payments are non-refundable, once the payment is done and confirmed at least in 1 block, there is hardly anything can be done to revert the payment. Advantage of using cryptocurrency ATM’s is that they are the easiest bridge between old traditional fiat world (accept cash banknotes) and transform to cryptocurrency.
Fair to say that similar schemes are used by scammers with different money transfer vehicles, e.g. users are asked to buy gift cards or various vouchers types. Cryptocurrencies and bitcoin ATM as conversion mechanism is much easier for scammers to use. First of all, bitcoin ATM is less understood by masses, and hence might look more “official” for victim and more people can fall for scam, which increases the probability of scam success. The figures from Edmonton Police Service confirm this, as fraud using Bitcoin were larger than 80% of CRA scams in 2018:Continue reading