How to Avoid Bitcoin ATM Scams

A Fictional Story Based on Real Life

One day, Ľudmila received an unexpected phone call. A man claiming to be a representative of the tax office informed her that she had significant unpaid tax debts that needed to be settled immediately—or she would face legal action.

Terrified of the potential consequences, she followed his instructions to the letter. The caller walked her through the payment process step by step and convinced her to pay the alleged debt using crypto-assets via a Bitcoin ATM. However, once the transactions were completed and the crypto-assets were sent, Ľudmila’s money was gone for good.

Bitcoin ATM Scam in 5 Steps

1. The scammer contacts the victim via phone with a pre-prepared story. Victims are often specifically targeted—typically seniors or financially inexperienced individuals.
2. The scammer usually impersonates a government official and pressures the victim, claiming they owe unpaid taxes or other debts and face criminal prosecution or arrest.
3. The scammer insists the only way to resolve the issue is by making the payment in crypto-assets.
4. The scammer then guides the victim to a nearby Bitcoin ATM, instructing them to deposit cash to purchase crypto-assets.
5. Once the victim sends the crypto-assets to the scammer’s wallet address, their money is almost certainly lost permanently.

Explanation of the Scam

Scams involving Bitcoin ATMs are becoming one of the most common tactics used by fraudsters. In this type of fraud, the victim is contacted by phone, and the scammer uses various strategies or fabricated stories to deceive and rob the victim.

Most often, scammers pose as representatives of government agencies, claiming the victim has unpaid taxes or debts. The scammer then pressures the victim to settle the alleged debt using crypto-assets.

Other tactics may also be used. Scammers might pretend to represent a trading platform or exchange where the victim supposedly has a frozen account with a large balance. They promise to unfreeze the account for a fee—payable via crypto-assets.

No matter what story the scammer tells, the goal is always the same: to get the victim, along with their cash, to a Bitcoin ATM. The victim is then instructed to deposit the money and send the purchased crypto-assets to the scammer’s wallet address.

Once the transaction is complete, and the crypto-assets are in the scammer’s wallet, there’s very little chance of recovering the lost funds. Crypto transactions are irreversible and often offer a degree of anonymity—enough for scammers to successfully carry out this type of crime.

NBS Advice

These types of scams have clear warning signs that you should be aware of. While one warning sign on its own may not necessarily mean it’s a scam, if several of the following appear together, you should be extremely cautious:

• A phone call from an unknown or hidden number.
• The caller has a foreign accent—most commonly Russian or Ukrainian.
• The caller uses emotional or time pressure to rush your decisions.
• You’re asked to pay any kind of debt using crypto-assets, especially via a Bitcoin ATM.

If you suspect a scam, contact the Slovak Police (Polícia SR).

Last updated on 25 Mar 2025