(KY3) – A handful of states, including Arkansas, now have laws that better protect consumers from cryptocurrency ATM scams.
When it comes to scams, we often say ‘pause.’ Take a second and think about it. That’s exactly what these new laws do.
There’s a 72-hour hold on all transfers, with the ability to cancel transactions. Cryptocurrency ATMs resemble traditional ATMs, but instead of dispensing cash, they accept cash in exchange for cryptocurrency. It can be anonymous and immediate, and that’s why scammers love them. Crooks use urgency to pull a fast one, and before you know it, the money you sent cannot be traced.
The Louisiana law, which went into effect this month, requires the holders of machines to have a warning saying, ‘no government official will ever request a payment through a crypto ATM’.
Scam expert Steve Weisman, of Scamicide supports it.
“When someone finally realizes the emergency is up, and they just sent this money out. They check with the FBI. They didn’t ask for it. The money isn’t gone. There really is no harm here. The only one who needs it to immediately go through is the scammer,” said Weisman.
So far, no bill in Missouri. In Congress, there’s the Crypto ATM Fraud Prevention Act. It sets a daily $2,000 spending limit. Requires the company to talk with new customers and requires full refunds when customers file police reports. It has a long way to go before becoming law.
These scams usually start with a phone call from a person claiming to be an IRS agent or police officer. Even if they give you a badge number, be skeptical.
- Remember, a genuine government employee will not accept cryptocurrency payments.
- Never give them personal information.
- If you’re really worried about it, hang up. Look up your sheriff’s office number and ask if there’s a problem.
If you come across a scam, report it to the Better Business Bureau, the Missouri and Arkansas Attorney General, and tell On Your Side about it too.
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