Scammers in Wood County using crypto machines to extort money

WISCONSIN RAPIDS, Wis. (WSAW) - The Wood County Sheriff’s Department is warning the public of a widespread fraud scheme where scammers portray themselves as a local bank representative or a representative from an online store to extort money.

How they do it:

Scammers are claiming to be from a bank or agency and say you have been a victim of fraud. They then send you a QR code to use at the crypto machine claiming the money from your bank account will be transferred into a digital wallet for your use. However, the money you put into the machine using the QR code actually gets sent to the scammer’s bank account.

These crypto machines, typically seen with the Bitcoin logo, are often found in gas stations or convenience stores throughout the country. They use a QR code to allow customers to purchase cryptocurrency such as Bitcoin for a fee by inserting U.S. currency into the machine and receiving crypto in a digital wallet.

Additionally, all crypto transactions are not regulated or protected like they are when using a traditional ATM or currency machine, making them very appealing to scammers.

Could I be a victim?

On March 29, the Wood County Sheriff’s Department was contacted by a person who had recently been scammed by someone claiming to be from their local bank and said they were from the FBI. A total of $9,000 was withdrawn from the victim’s bank account and then entered into a crypto machine in the City of Wisconsin Rapids. On March 30, the sheriff’s department conducted a search warrant on the crypto machine the money was placed into and was able to recover the entire $9,000 and return it to the victim.

Unfortunately, many cases do not turn out like this and people lose significant amounts of their hard-earned money through these scams even worse, they are not federally insured so people cannot submit fraud claims through their bank to have their money returned.

These callers present themselves as a representative of a company or organization and pressure you into making a payment to them in some form. They often ask to allow them to access your computer remotely and stay on the phone with you while you pick up a form of payment whether it be a gift card, money transfer, or crypto transfer.

How to prevent it from happening to me?

If you are called by someone claiming that you have become a victim of fraud, be very careful as it very well could be a scam attempt. There are also legitimate purposes for consumers to purchase crypto through the machines, but people should use caution like with any financial transaction.

The sheriff’s department says no bank, business, or government agency will ever contact you to come withdraw funds from your account or tell you to put those funds into a cryptocurrency machine.

If you or someone you know has been victimized by one of these scams, contact your local law enforcement officials immediately.