Canadian Investors Using Bitcoin ATMs to Purchase BTC are Warned of a New Scam by Authorities


In a report released by one of the Canadian dailies, authorities in the country are warning potential Bitcoin investors to beware of the ATM scams, which are becoming more rampant. Winnipeg police brought to light a recent scam intended to part gullible investors with their Bitcoin (BTC) as leaflets spread across Bitcoin ATMs in the state.

“Beware of Bitcoin ATMs scams”

A report from Manitoba Post warns users of an ongoing scam whereby posters and flyers are plastered across Bitcoin ATMs asking users to send their Bitcoin from their address once bought. The leaflets (an example shown below) asks buyers to scan a QR Code and send already bought Bitcoins to an account – “CoinBTC”.

A fake Bitcoin ATM poster  

Posters are plastered across Bitcoin ATMs in Canada to scam gullible investors (Source: Manitoba Post)

While the scam looks obvious for experts in the field, it can easily confuse early adopters of the pioneer cryptocurrency. The instructions look believable such as the statement, “Due to the inconvenience, the commission was temporarily reduced to 3%.”

Investors are cautioned against sending BTC to these addresses as it will result to loss of your tokens.

Regulations against Bitcoin ATM scams

On Aug 15, the state of Nevada official, Julie Hanivold, asked all ATM owners across the state to follow the regulations set for money transmitters. These owners will need to meet all of the statutory requirements that have been publicly posted on the state’s official website to be able to operate within the state.

As the number of Bitcoin ATMs across the globe crossed the 5,000 mark earlier in the year, regulations and vigilance will be needed for these ATMs to flourish.

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