MANITOWOC (NBC 26) — Cryptocurrency scams hit the lakeshore as some are scammed out of more than $100,000.
- Manitowoc Police Captain Cooper Schmidt says some local victims have lost $200,000
- The special ATMs allow you to invest in cryptocurrency with your credit card and send the funds around the world
(The following is a transcription of the full broadcast story)
In today’s high-tech world, scams can be hard to catch. On the lakeshore, a rising number of victims are getting tricked through cryptocurrency. At Bitcoin ATMs, scammers are taking advantage of a new age currency and making hundreds of thousands off of unsuspecting people.
Like many scams, this one starts with a phone call, often from out of the country. Sometimes, the criminals form a romantic relationship with the victims. Sometimes, they pose as police, telling them they need to pay a fine.
“These are long, drawn-out scams where people are being groomed for months, years sometimes,” said Manitowoc Police Captain Cooper Schmidt.
Eventually, the victims are told to visit a special ATM at a local convenience store. Captain Schmidt met me at one of the machines where all you need is your credit or debit card to buy online currency, like Bitcoin.
From there you can send your investment around the world, where the receiver can liquidate your fund.
“You simply enter your phone number, the phone or account number you want to send the money to, and it’s done and over within a couple of minutes,” said Schmidt.
I traveled to multiple Manitowoc Bitcoin ATM locations today, and many of the owners have put up cautionary stickers. One owner told me a victim was scammed for $8,000 last week in his store.
“These machines don’t have a teller that advises people that this may be a bad idea to send hundreds of thousands of dollars to a person you don’t know,” Schmidt said.
Schmidt told me he’s seen local victims lose up to $200,000.
“By the time you drive to the police department and report that you’ve lost that money, the money is typically overseas,” Schmidt explains.
Schmidt advises never sending money to someone you do not know, and if someone tells you you owe a fine, just call your local police station and ask.
“Oftentimes, when someone reaches out to you, it’s a scam,” he added.
Captain Schmidt says that scammers will be pushier, almost aggressive to get you to an ATM, unlike real law enforcement.
