SEC Drops Investigation of Bitcoin Scaling Network Stacks

North Carolina Attorney General Josh Stein issued a consumer alert warning of bitcoin ATM scams, following numerous complaints from individuals who were defrauded.

“People may use bitcoin ATMs for legitimate reasons, but scammers may use them to try to steal your hard-earned money. Once someone converts or sends money through cryptocurrency, it is difficult for law enforcement to recover the funds,” Stein said, as quoted by Bitcoin.com, Tuesday (7/16/2024). To help avoid such scams, Stein provides several tips. First, be wary of unsolicited messages asking for cryptocurrency payments.

Stein urged everyone to think carefully before sending money via gift cards, wire transfers or cryptocurrency, as these are common scam tactics.

Second, be wary of online relationships that quickly turn financial. Scammers often form bonds on platforms like Facebook or Linkedin and eventually ask for money.

“If an online acquaintance or lover asks for money via a bitcoin ATM, it is most likely a scam, the warning notes,” it explains.

Third, verify the identity and credibility of anyone offering investment advice. Scammers may pretend to be professionals to trick newcomers.

Additionally, the Attorney General's office advises consumers to be wary of get-rich-quick schemes and scare tactics, warning:

Stein added that criminals sometimes lure people in by promising quick returns on their cryptocurrency investments. If the deal seems too good to be true, it probably is.