How to Avoid Bitcoin ATM Scams

Our Team Put Together a List of Common Scams to Avoid
By 
Coin Cloud Team
, published on 
February 27, 2019
How to Avoid Bitcoin ATM Scams

With over 220 BTMs across the United States, Coin Cloud represents the largest two-way network of Bitcoin ATMs in the nation. By having such a vast network, it allows both current and prospective Coin Cloud customers to use our machines as their preferred gateway to the world of cryptocurrencies. No matter where you are in the country, you can use our map locator to find the nearest location to you. This allows thousands of happy customers buy and sell 30 different cryptocurrencies on our machines with ease.

However, having such a vast network of machines also puts our customers at risk of being unknowingly scammed by fraudsters who prey on industry leaders like Coin Cloud. Because of that, we have put together a guide to ensure that our customers are doing everything within their power to avoid getting scammed. At the same time, we at Coin Cloud work day in and day out and take great measures to make sure that all of our customers are safe and secure when using our machines.

Here is a list of common scams to avoid:

     
  1. IRS Scams: Scammers will go to great lengths to scam people into believing that they owe the government money. They’ll call, email, send mail, whatever. Anything to scam you. When you get approached by one of these fraudsters and they tell you to use a Bitcoin ATM to wire the payment to avoid being charged with a crime, don’t do it! First things first, the government clearly doesn’t accept Bitcoin, so this should be an easy one to avoid. If someone specifically tells you to use a Coin Cloud ATM, please report it to our Customer Success Team immediately at support@coin.cloud.
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  3. Social Security Scams: These scams may involve someone from the Social Security Administration saying that you need to verify your identity and send a payment to avoid penalties. If they tell you to use a Bitcoin ATM, do not do it. Once again, no government agency will ever ask for you to complete a payment via Bitcoin ATMs.
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  5. Utility Scams: People posing as personnel from one of your utility companies will call you up and threaten to shut off your service if you do not complete a payment right away. With your electricity or water supply looming over your head, we understand why you might be tempted to go ahead and follow their orders. But please be smart… if someone tells you to complete a payment via Bitcoin ATMs, do not do it. Take a second, breathe, and find the real number to your utility company so you can give them a call and verify that your services are okay.
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  7. Fake Membership Scams: Scammers will call in from a ‘real’ company offering you ridiculous deals on high-priced items. These items can be anything from cars to vacations or concert tickets. Understandably, lots of people would love to make that purchase when the deal just seems too good to be true. Well, if it seems too good to be true, it likely is too good to be true. Don’t fall for it. While we are optimistic that crypto adoption will become so widespread that crypto ATMs are the standard method to send payments, we are currently not quite there yet. So, if any of these ‘companies’ ask you to send a payment via a Bitcoin ATM, please don’t do it to avoid being scammed.

Coin Cloud is registered with FinCEN as a Money Services Business and is compliant with all Federal and State AML/KYC rules including BSA, FinCEN, OFAC and CFPB. Take a look at our BTM location map to find the nearest Coin Cloud ATM to you. Our machines allow users to buy and sell 30 altcoins with cash.

Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.

What is Coin Cloud?

Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.

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