**Federal Prosecutors Warn Bitcoin ATMs Facilitate Widespread Cryptocurrency Scams**
Federal prosecutors have raised concerns about Bitcoin ATMs being used to facilitate widespread cryptocurrency scams across the United States. Washington, D.C., Attorney General Brian Schwalb has revealed that these machines have enabled scammers to steal millions of dollars from victims, with elderly individuals being the primary targets.
### Rising Scam Reports Linked to Bitcoin ATMs
Across multiple counties in the U.S., reports of cryptocurrency fraud cases involving Bitcoin ATMs are on the rise. Scammers often exploit vulnerable older adults through fear tactics, such as falsely claiming that relatives are facing arrest or that victims owe penalties for missing jury duty. These criminals then demand payment in Bitcoin and direct victims to nearby Bitcoin ATMs to complete the transactions.
The effectiveness of these scams lies in the sense of panic and urgency created by the perpetrators. Victims feel compelled to act quickly without verifying the authenticity of the claims.
### A Victim’s Story: Maryland Retiree Loses Life Savings
Maryland retiree Diane Reynolds is one such victim of a Bitcoin ATM scam. She received an online message warning that access to her computer had been blocked and advising her against turning it on or off. Following instructions, Reynolds called a provided phone number supposedly for tech support, but instead reached a scammer.
The scammer claimed hackers had accessed her bank accounts and insisted she must convert her money to Bitcoin immediately. Under pressure, Reynolds withdrew her entire bank balance of approximately $13,100. The scammers directed her to use a Bitcoin ATM at a local gas station operated by Athena Bitcoin, a company running over 4,000 Bitcoin ATM terminals across multiple states.
### Concerns Over Bitcoin ATM Operators
Attorney General Schwalb notes that Reynolds’ case is just one of many similar incidents nationwide. These schemes have become increasingly common in recent months, with Bitcoin ATMs serving as tools scammers use to defraud people.
“Bitcoin ATMs are a tool that scammers, that criminals, are using to separate people,” Schwalb said. He added that while operators are aware of these criminal activities, they often fail to put sufficient measures in place to prevent fraud.
Additionally, Bitcoin ATM operators profit from each transaction through substantial fees, even when deposits result from fraudulent activity. This financial incentive, Schwalb argues, undermines efforts to combat fraud.
### Legal Action Against Athena Bitcoin
In September, Schwalb filed a lawsuit against Athena Bitcoin, alleging that the company charged undisclosed transaction fees and failed to implement adequate anti-fraud measures. These legal actions aim to hold Bitcoin ATM operators accountable for enabling theft through their systems.
### Company Response and Defense
Athena Bitcoin strongly denies the allegations. According to company representatives, their Bitcoin ATMs include multiple fraud prevention features designed to protect customers.
“Our kiosks employ multiple safeguards, from prominent warnings and daily transaction limits to five separate verification screens designed to prevent coerced transactions,” the company stated. Athena Bitcoin plans to vigorously defend itself against the charges in upcoming court proceedings.
### Victim’s Legal Pursuit
Diane Reynolds has also initiated legal action against Athena Bitcoin. Her attorney, Vaught Stewart, contends that the company knowingly allowed fraud to occur and profited from the transaction despite clear warning signs of criminal activity.
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As cryptocurrency scams continue to evolve, authorities urge the public—especially the elderly—to remain vigilant when approached with urgent demands for Bitcoin payments via ATMs. Awareness and verification remain key tools in preventing financial loss from such fraudulent schemes.
https://coincentral.com/bitcoin-atms-under-fire-how-scammers-steal-millions-from-victims/