Officers warn of cryptocurrency scam that has caused Coloradans to lose thousands
DENVER (KDVR) — Denver police are sharing a scam pattern seen in Colorado involving cryptocurrency ATMs.
According to the agency, scammers will call a victim and tell them they have an outstanding warrant and must pay a certain amount to clear their warrant.
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However, instead of asking for a wire transfer or for the victim to purchase and deliver gift cards or pre-paid debit cards — both methods Colorado law enforcement has seen scammers use to pry money out of victim’s wallets — these scammers ask for payment through a cryptocurrency ATM.
Cryptocurrency ATMs are commonly found in supermarkets, liquor stores or smoke shops and are ways for cryptocurrency customers to connect to their digital wallets and process buy or sell transactions. Often, these transactions are in exchange for cash or funded through a debit card.
According to the Denver Police Department, a recent example in Denver involved a victim who received a call from someone who presented themself as a Denver police officer. The scammer told the victim she needed to pay thousands of dollars to make bail, or she would be put in jail for up to 72 hours.
To pay this, the scammer directed her to a nearby laundromat where she used the cryptocurrency option on the self-service banking kiosk to send the purported “bail” money. In this case, the victim sent the stated amount but was told she needed to send more, and that the first deposit was inaccurate. The scammer told the victim they would return her first deposit via a cashier’s check.
According to the agency, she lost almost $14,000 to the scam.
DPD offers tips on identifying and avoiding scams
The Denver police provided several tips on how citizens can avoid losing their funds to a scammer.
The agency stressed that law enforcement agencies do not clear warrants or bonds over the phone; warrants can only be canceled by a legal court order. In conjunction with that, warrants are not paid over the phone.
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DPD shared that law enforcement agencies will never ask for payment through gift cards, wire transfers, ATM deposits, pre-paid debit cards or cryptocurrency deposits.
If you receive a call from someone claiming you have a warrant or are wanted, and that to cancel the warrant you can “simply wire transfer funds, make a deposit at an ATM or cryptocurrency kiosk, or buy gift cards or prepaid debit cards and provide them with the redemption codes,” the agency instructs the potential victims to hang up, because it is a scam.
Prospective victims can report the scam to law enforcement. In Denver, individuals can call 720-913-2000 and press 2, or file a complaint through the Colorado Attorney General’s Office at coag.gov/file-complaint/scams/.
To check if Denver police have issued a warrant for you, call 720-337-0464.
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According to the Colorado Attorney General’s Office, there are a slew of common scams that affect Coloradans each year. These include:
- Check scams: You receive a fake cashier’s check, and the scammer asks for cash and a wire transfer to cover taxes and fees
- Dating and romance scams: A scammer presents themselves as an attractive lover, but eventually finds a reason to ask for money.
- Debt collection scams: A scammer calls and says you will be arrested or put in jail if the debt is not immediately paid, often through prepaid credit cards.
- IRS scams: A scammer calls claiming to be an agent with the Internal Revenue Service and they need you to immediately pay your taxes
- Phishing scams: A scammer presents as a company you know and trust, but trick you into providing personal information which can be used to steal your identity and funds.
- Social Security scams: Scammers purport to be from the Social Security Administration and need your social security number or money, and threaten you with jail.
- Sweepstakes and lotteries: Have you entered a sweepstake or lottery? As a general rule, the AG’s Office says, all solicitation through the mail, telephone or electronics that requires you to purchase a product or pay a fee as a condition to enter, is illegal.
- Tech support scams: An unexpected phone call or pop-up message claims your computer has been infected with a virus, and offers assistance. Delete any such messages and hang up the phone if contacted.
- Government imposter scams: A fraudster pretends to work in an official capacity for a government agency, including local law enforcement or the FBI, and use that false authority to snatch your money.
The Federal Trade Commission offers a wide variety of resources for online scam security, available here.
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