The Kenosha Police Department has issued a warning to residents about a Bitcoin ATM scam technique as they investigate two reports of apparent fraud.
According to the department, both victims received alerts on their electronic devices saying their identities had been compromised and that they needed to transfer money to a “federal box” before their bank accounts were frozen.
They were encouraged to deposit the money into a Bitcoin ATM and were provided a QR code sent to the victims’ phones, which sent the newly purchased Bitcoin to the scammer’s account.
Victims were also directed to purchase prepaid credit cards and provide the scammer with the code to allow them to use them immediately.
“Victims must know that government agencies will never require the purchase of items or the depositing of money to prevent a particular action, such as freezing assets,” the release said.
According to the department, there are multiple Bitcoin ATMs in the Kenosha areas and some notify users they may be victims of fraud and provides the VictimConnect helpline, 855-484-2846.
However, “the scammers are coaching victims to ignore those warnings or referring them to machines that do not have the warnings,” police stated.
The department advises any victims of fraud or those with questions to contact the Kenosha Police Department Fraud Unit at 262-605-5203.
The department is working with the Kenosha County Aging & Disability Resource Center to “reduce fraud amongst our residents.”
“Although the scammers coach people not to contact friends, family or the police, we urge citizens to reach out before it is too late, and for family members of elderly citizens to have conversations that encourage loved ones to call someone if they believe something is wrong.,” the department advised.
