Crypto Scam: Louisiana Bitcoin Protection ATM Help Recover $200,000 – Details
A recently passed law in the state of Louisiana has helped seniors recover $200,000 following the operation of a Bitcoin ATM scam. This development represents a good example of the government protecting the interests of users even as it promotes the acquisition of digital assets.
Louisiana Law Presents Big Trouble for Crypto Scammers
According to a report by local media outlet 7KPLC, a group of scammers recently targeted senior citizens in Louisiana and Texas in a mysterious scheme that led to at least four known victims. It was gathered that fraudsters often tricked unsuspecting adults into believing that their bank accounts were empty and falsely accused them of child pornography cases.
After that, these perpetrators would continue to threaten elderly citizens with arrest unless they were forced to pay large sums of money. Eventually victims were directed to Bitcoin ATMs, which allow users to exchange cash for cryptocurrency, to process these fraudulent transactions in anonymously managed wallets.
According to data from the Bitcoin ATM Map, there are 288 Bitcoin ATM/Tellers in Louisiana, representing the Southeast region’s friendliness to the crypto industry. However, a law recently passed in Louisiana has introduced several measures to combat crypto scams. This includes mandatory markings on all Bitcoin ATMs, meaning that no individual or government-affiliated entity can demand that money be deposited into these machines.
In addition, the machines are programmed to display warning messages to users during the purchase. In particular, users are advised to always be aware of scams, especially if they are provided with a QR code or wallet ID by someone else. In addition, the new rules include a $3,000 daily limit on deposits and a 72-hour waiting period for all transactions to detect all malicious and fraudulent money transfers.
According to KPLC, the new rules allowed authorities to recover $200,000 from the four targeted adults. Other victims of this scam are advised to reach out to the Louisiana branch of AARP, the largest US non-profit, non-profit organization dedicated to supporting and advocating for people age 50 and older and their families.
Bitcoin ATM Scam: The Next Danger?
Although Louisiana has recently enacted laws to deal with scams involving Bitcoin ATMs, Bitcoinist reported that Missouri Attorney General Catherine Hanaway has recently opened an investigation into companies using these machines, citing concerns about the fraudulent structure of the money and the use of fraud by bad actors.
As seen in Louisiana, Hanaway said he received reports of new scam activity involving significant use of Bitcoin ATMs, thus prompting a statewide investigation. Notably, companies under the AG’s investigation include GPD Holdings, Rockitcoin, Bitcoin Depot, Athena Bitcoin, and Byte Federal.
Featured image from Flickr, chart from Tradingview
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