Maryland Retiree Loses $13,100 to Bitcoin ATM Scam

Washington, D.C. — A Maryland retiree, Diane Reynolds, lost $13,100 after falling victim to a cryptocurrency scam that led her to convert her savings into Bitcoin at an ATM. The incident highlights the growing concern over scams linked to Bitcoin ATMs.

The scam began when Reynolds received a message claiming that access to her computer had been blocked for safety reasons. “There was a voice message that said, ‘Don’t turn your computer on, don’t turn your computer off,'” she told CBS News.

Reynolds was directed to call a phone number for tech support but instead connected with a scammer who claimed hackers had accessed her bank account. To protect her funds, the scammer insisted she convert her money into Bitcoin.

Following these instructions, Reynolds withdrew her entire savings and went to a Bitcoin ATM at a nearby gas station, which is operated by Athena Bitcoin. Washington, D.C. Attorney General Brian Schwalb stated that incidents like Reynolds’ demonstrate the rise in cryptocurrency scams, leading to the loss of millions of dollars.

“Bitcoin ATMs are tools that scammers use to extract money from individuals, including D.C. residents,” Schwalb said in a statement. He criticized Athena Bitcoin for failing to implement adequate anti-fraud measures, despite profiting from substantial transaction fees.

In September, Schwalb filed a lawsuit against Athena, alleging that it charges undisclosed fees and does not protect customers from scams. The company responded by saying it disagrees with the allegations and employs various safety protocols, such as transaction limits and verification screens.

Reynolds is also pursuing legal action against Athena Bitcoin. Her attorney, Vaught Stewart, stated that the company is profiting from scams rather than protecting the victims.

According to Schwalb, Athena Bitcoin charges fees of up to 26% per transaction, with a staggering 93% of deposits linked to fraud. Reynolds expressed a desire to raise awareness among others to prevent future scams. “Now I’m an advocate for just telling people this is real,” she said. “Be aware.”

The rise in financial scams involving Bitcoin ATMs is alarming, with the Federal Trade Commission revealing that such scams are becoming increasingly common, particularly targeting seniors. The Better Business Bureau also notes that claims about hacked computers are a significant warning sign of potential fraud.