Bitcoin ATM scams are on the rise, and North Dakota has witnessed an increase in crime in several counties. Reports say the scammers have called residents and are urging them to pay certain legal fees for losing their duties as a ju apprentice with Bitcoin or other gift cards.
According to several reports coming out of Stanley County, the sheriff’s office told the United Judicial System (UJS) it has received more than 30 reports of suspicious calls over the past few days. Most callers have told Stanley County residents that they have a $2,000 warrant for their arrests and instruct them to visit local convenience stores to send money using digital assets such as Bitcoin.
Bitcoin ATM Scam Rock Stanley County
According to Greg Swanson, chief of the Stanley County Sheriff’s Office, these criminals have different ways of carrying out their activities, using scary tactics as key examples. “They put them on the phone while they drive to the Bitcoin machine and tell them how they’re going to go about this action,” Swanson said. He also added that scammers are trying to use the sheriff’s office phone number to make them look legal.
Some scammers said they use the sheriff’s office logo when sending fraud emails in clear efforts to make them seem legal and persuasive. The UJS also warned the public that they had told them not to call anyone regarding the ju appellate duties on subsequent payments, about the growing threat of a call to have lost the ju appellate duties.
“We never call anyone. We never ask for money on the phone. We never accept or look for bitcoin, cryptocurrencies, those really big red flags and so on.”
The fraud has earned a large amount of money on criminals, and Stanley County residents have pointed out that they have lost $4,000 to the fraudsters. The sheriff’s office continues its investigation, but no suspects have been found yet.
According to Jesse Schmidt of the South Dakota Department of Better Business, criminals usually swing for a home run when they carry out a fraud. He mentioned how they carry out their crimes and noted that they prey on people’s ignorance to make money.
“These scams are dialing in dollars. They make thousands of calls a day, but all they need to do is send hundreds or thousands of dollars at once.
AARP is seeking restrictions on cryptocurrency kiosks
Meanwhile, AARP is calling for restrictions on cryptocurrency kiosks amid growing concern over a rise in fraud. The group is calling on North Dakota Governor Kelly Armstrong to sign a bill regulating kiosk activities. According to a 2023 FBI report, Americans lost around $5.6 billion in cryptocurrency fraud, while North Dakota lost $6 million.
House Bill 1447 allows consumers to be protected by licensed cryptocurrency kiosk operators, displaying fraud warnings on machines, and allowing operators to provide forced printing receipts detailing full transaction information. “These machines look like ATMs, so people are inserting money because they think it’s safe,” said Janelle Moos, advocacy director at AARP North Dakota.
Janelle Moos added that when users send digital assets to the scammer’s wallet, they run out of money. She noted that criminals have made this happen and are using the tool to fraudulent residents of the state from their hard-earned cash. The AARP also said the bill would provide important safeguards and help protect North Dakota seniors and other vulnerable consumers from victims of crypto fraud.
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