LAS VEGAS (KSNV) — A warning sticker on a cryptocurrency ATM inside a Las Vegas liquor store aims to alert customers to the possibility of falling victim to a scam that is surging nationwide involving these types of machines.
The crypto ATM is inside Sam’s Market on Charleston Boulevard near Cimarron Road. The sticker reads “Warning. Scam Alert. If someone on the phone directed you to this ATM, IT’S A SCAM! Hang up and ask for help.”
It’s one of several stickers Revaldo Kajue said the business received six months ago from the company that owns the kiosks, to be placed on the machines inside their stores around the valley.
“We have been applying stickers to all of our things,” said Revaldo Kajue, who oversees several family-owned locations.
The sticker tries to alert customers as law enforcement receives more reports about scams involving the machines.
The scheme involves criminals targeting victims with urgent demands to deposit money into cryptocurrency ATMs to avoid arrest, pay a fake fine, or participate in a supposed investment.
Law enforcement officials said scammers exploit fear and confusion to steal thousands of dollars within minutes. Some of the victims may walk into a store while on the phone with the criminal, who is guiding them step by step on how to deposit the cash, which is sent to a scammer’s digital wallet.
MORE ON NEWS 3 | Law enforcement warns of rising crypto ATM scam targeting Southern Nevada residents
Kajue said employees watch for suspicious activity.
“We’ve been trying to tell our employees to look out for any suspicion and all that stuff,” Kajue said while adding that the family’s stores have hosted crypto ATMs for roughly two years.
The Las Vegas Metropolitan Police Department said there are more than 400 kiosks in Clark County located inside convenience stores, smoke shops, liquor stores, and gas stations.
The kiosks themselves are a legitimate business to buy and sell cryptocurrency and must be registered with the Nevada Financial Institutions Division (FID) as money transmitters, but law enforcement and cybersecurity experts said scammers have learned to exploit them.
“Scammers are leveraging trust and fear,” said Dasha Davies, president of cybersecurity firm Stealth ISS Group. “They can even pretend to help recover the money after a victim realizes they were scammed, asking for more payments and trapping them in a never-ending cycle.”
Police said scammers often pose as law enforcement officers, employers, or even romantic partners.
Victims are told to withdraw cash from their bank account, sometimes thousands of dollars, and deposit it into a crypto ATM. The scammer may provide a QR code for the victim to scan.
According to the FID, the agency can only take action against licensed money transmitters that violate state or federal law; it does not have the authority to prosecute the scammers themselves.
“Some individuals place too much trust in others and may overlook important disclosures and warnings provided by licensees,” the FID said in a statement to News 3. “Unfortunately, this can lead to losses when cryptocurrency is sent to an address controlled by someone they do not personally know.”
The division says it is exploring ways to collaborate with other state agencies to enhance disclosures and expand outreach to warn the public.
Some machines will not only have stickers and labels but also provide disclaimers and questions on the screen for the user to consider before continuing with the transaction.
FID Full Statement:
The Financial Institutions Division (FID) may only take action against a licensee when there is a violation of state or federal laws and regulations within its jurisdiction. Unfortunately, some individuals place too much trust in others and may overlook important disclosures and warnings provided by licensees.
One common risk involves sending cryptocurrency to a blockchain address that does not belong to the sender or to someone they do not personally know. This can lead to scams, including romance scams, where individuals are misled into believing they are sending cryptocurrency to someone with whom they have a romantic relationship, when they do not.
It is important to note that FID does not have the statutory or regulatory authority to pursue legal action against fraudsters. However, FID can refer consumers to the appropriate agencies, such as: Metro Financial Crimes Division, the Attorney General’s Consumer Affairs Unit, the Nevada Secretary of State’s Office, the Consumer Financial Protection Bureau, or http://www.ic3.gov.
FID is looking for ways to collaborate with other state agencies to enhance disclosures and expand public outreach efforts to raise awareness about the risks.
News 3 contacted the state Attorney General’s office last week, and we’re told that the scam is on their radar.
