The Hays Police Department is issuing a public safety alert regarding a significant increase in scams that coerce residents into sending money through Bitcoin Automated Teller Machines (BTMs).
These sophisticated schemes often involve impersonation of government officials or trusted entities. They have resulted in substantial financial losses for victims nationwide, including in Hays.
“Let me be absolutely clear: no legitimate government agency, law enforcement, or utility company will ever demand payment through a Bitcoin ATM, gift card, or wire transfer,” said Hays Chief of Police Don Scheibler. “If someone tells you to use one of these machines to pay a fine, resolve an issue, or protect your money, it is a scam. Hang up immediately and verify the request through official channels.”
Scammers typically initiate contact through unexpected phone calls, text messages, or email, often creating a high-pressure, urgent scenario.
They may pose as IRS agents threatening arrest for unpaid taxes, law enforcement officials claiming involvement in money laundering, or tech support representatives warning of compromised bank accounts.
The common thread is the demand for immediate payment via a Bitcoin ATM, often directing victims to specific locations and providing QR codes to facilitate the transfer of funds directly to the scammer’s digital wallet.
“These criminals exploit fear and a sense of urgency,” Scheibler said. “They will keep you on the phone, preventing you from seeking advice from family or friends, and pressure you into withdrawing large sums of cash. Once that cash is deposited into a Bitcoin ATM and converted to cryptocurrency, it is almost impossible to retrieve.”
The financial toll of these scams is alarming.
Nationally, fraud losses involving Bitcoin ATMs have surged, increasing nearly tenfold from 2020 to 2023, and exceeding $65 million in tracking the first half of 2024 alone, according to the latest information available.
The median loss reported by individuals who used BTMs in these scams was a staggering $10,000.
Individuals aged 60 and over are disproportionately affected, accounting for approximately $46 million, or 71%, of reported BTM-related losses in the first half of this year.
Broader cryptocurrency investment fraud schemes have led to billions of dollars in losses annually.
The difficulty in recovering funds stems from the inherent nature of cryptocurrency transactions.
Once funds are transferred via a BTM, the transaction is irreversible.
The decentralized and often anonymous nature of blockchain technology, coupled with the international reach of these criminal networks, makes tracing and recovering stolen funds exceptionally challenging for law enforcement.
Scammers frequently disperse stolen cryptocurrency across numerous digital wallets to obscure their tracks, further complicating recovery efforts.
Further, victims are often re-victimized by “recovery scams,” fraudulent services that promise to retrieve lost cryptocurrency for an upfront fee, only to steal more money.
The Hays Police Department urges all residents to remain vigilant and follow these critical prevention tips:
· Never respond to unsolicited calls, texts, or emails demanding immediate payment, especially if they involve Bitcoin ATMs, gift cards, or wire transfers.
· Always verify requests independently. If you receive a suspicious call from an alleged government agency or business, hang up and call them back using a phone number found on their official website or a trusted bill, not one provided by the caller.
· Slow down. Scammers rely on panic. Take time to think and discuss the situation with a trusted family member or friend.
· Understand that legitimate entities will never demand payment in cryptocurrency.
If you believe you have been targeted by a Bitcoin ATM scam or any other financial fraud, please contact the Hays Police Department immediately at (785) 625-1030.
You can also file a report with the Federal Trade Commission at ReportFraud.ftc.gov and the FBI’s Internet Crime Complaint Center (IC3) at ic3.gov.
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