Scottsdale police say crypto ATMs are becoming hotbed for fraud #CriptoNews

Scottsdale, the (Azfamily) — Scams involving cryptocurrency are skyrocketing, and the FBI estimates Arizonans lose hundreds of millions of dollars to these scams each year.

While Scottsdale police say they’re seeing an increase in younger adults investing and losing money, in most cases, retirees lose more.

“I mean cryptocurrency schemes are so vast, and they happen so quickly, it’s really taking on a new form of fraud,” said Scottsdale Police Financial Crimes Det. Jeff Brennan.

He says he’s seeing more and more of these schemes in Scottsdale.

“You could see some of the losses are just absolutely devastating to the victims and it’s increasing in extreme amounts,” Brennan said as he went down the list of cases he’s investigated so far this year.

In Scottsdale, police have put signs on the Bitcoin ATMs around the city. The signs read, “Stop! If you don’t know the person you’re talking to, you’re being scammed.” Brennan says fraudsters still manage to drain victim’s bank accounts.

“Unfortunately, a lot of victims, even if confronted by law enforcement, still legitimately believe either the person they’re speaking to over the phone is in fact what they’re telling them or what they are,” he said.

According to the FBI’s 2023 report on cryptocurrency fraud, Arizona residents lost roughly $127 million to virtual money fraud, with people over 60 targeted the most.

“Cryptocurrency can move across the world in the matter of seconds, so it’s absolutely important if there’s any chance of recovering any kind of money that I get that information as soon as possible,” Brennan said.

“Out of all the cases that you have investigated dealing with cryptocurrency, how many people have you guys managed to track down and arrest?” asked Arizona’s Family reporter Alexis Dominguez.

“Currently one, so it’s extremely rare that it’s local or state side where we’re able to trace it back to a local individual. Unfortunately, a lot of the time what we’re dealing with or what we’re looking at is once the money goes overseas, it becomes a matter of can we get the money back,” Brennan answered.

“How often does that happen?” Dominguez asked. “It’s still extremely rare because it’s based upon cooperation,” he said.

Arizona lawmakers are looking to crack down on Bitcoin ATMs with House Bill 2387. It aims to limit the daily transaction amount to $1,000 and requires state operator licensing and refund policy options. The bill is awaiting a third read in the Arizona State Senate.

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