Thomas, 68, was just sitting down for his morning coffee when his phone rang.
“Hello, this is the fraud department from your bank,” said a calm, professional voice. “There has been suspicious activity on your account, but don’t worry, we caught it early.”
Thomas felt a knot form in his stomach. He had been a victim of identity theft years ago, but he thought he’d sorted it all out. Maybe the effects were still lingering?
“Is my money safe?” Thomas asked frantically.
“That’s why I’m calling,” the man replied. “We need to secure your funds immediately.”
What Happened Next
The caller guided Thomas through a “temporary protection process” that involved 3 steps: 1. Withdraw cash from his bank 2. Go to a nearby “crypto ATM” to move the money into a secure digital account 3. Wait for the funds to be returned once the investigation is complete Thomas had never heard of a crypto ATM, but his daughter always made fun of him for being a little behind the times on technology, so he certainly wasn’t going to call her and ask. This was probably just a standard procedure he wasn’t aware of.The Scam at the ATM
Thomas drove to a convenience store where the ATM machine sat in the corner. The caller instructed him to feed the cash, all $8,000 he’d pulled from his savings account, into the ATM and scan a code. He scanned the code and received a reassuring “transaction complete!” notification. “Okay, what happens now?” Thomas asked. Silence. “Hello?” Thomas asked again. The line had gone dead. Thomas tried calling back but the number was no longer in service. That was when he realized the entire interaction had been a scam. His money had not been “secured,” and was never actually in any danger. Now, it was gone.How the Scam Worked
- Impersonation: The scammers pose as a bank, government agency, tech support or other entity.
- Urgency: Scammers create fear and urgency around privacy, security, legal matters or potential financial losses to scare you into action.
- Crypto ATMs: This method of money transfer is popular with scammers, and the money is nearly impossible to recover.
- Social Compliance: Scammers hope you’re unfamiliar with crypto ATMs but don’t want to admit that and ask questions. “Social compliance” is the tendency to just go along with what others expect and scammers exploit that.
Protect Yourself
Remember, your bank will NEVER:- Ask you to use a crypto ATM
- Ask you to withdraw cash to “keep it safe”
- Pressure you to act immediately or provide personal information over the phone
