Folks who use Bitcoin are going to want to keep a tight grip on their wallets.
Last Thursday, the Washoe County Sheriff’s Office (WSCO) responded to a citizen report of fraud in Lemmon Valley after they were convinced to withdraw money from their bank account and secure it into a crypto currency account.
Deputies learned that the victim had been contacted, and then defrauded $15,000, which was ultimately deposited into a Bitcoin ATM.
Police said scammers had threatened the victim telling them that their account was linked to online criminal activity and to prevent these crimes the victim needed to move the money from their bank account into a crypto-currency account.
WCSO said this scam has accounted for over $500,000 worth of losses to Washoe County residents this year.
“So recently the county has seen an increase in fraudulent activity revolving crypto currency. Specifically, crypto currency being purchased through a crypto ATM,” said WCSO Detective Richard Spaulding.
Detective Spaulding told us that how it works is people will receive a phone call or email claiming that their bank account has been compromised.
The scammers then convince victims that they must withdraw large amounts of money and deposit them into in a bitcoin or crypto currency ATM.
Victims are told that crypto currency is secure in the public block chain, but the Better Business Bureau said that crypto currency is not backed by any government or any type of banking system which puts your money at risk.
“So we’re so used to protections that are available to us. If we happen to use a credit card, we can dispute a charge,” said Timothy Johnston of the Better Business Bureau. “If we think something is going on with our bank account, we can reach out to the bank. When it comes to crypto currency, it’s not backed by anything.”
Detective Spaulding told us that most banking institutions will not call you if your account has been compromised.
They usually will send you a text or email. If you do get an email, check the address and message for incorrect spelling and grammar, and avoid social media accounts that are asking for money or trying to convince you to use a crypto currency account.
WCSO said that if you think you might be getting scammed, do not respond and immediately contact your bank. They will be able to confirm if your account has been compromised or not.
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