Coin Cloud Bitcoin ATM

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Coin Cloud is a bitcoin ATM company pioneering compliance and convenience. Find a location near you.

Contact us if you are interested in bringing bitcoin to your retail location.

Avoid Bitcoin Scams

Known Scams

If you have been asked to purchase bitcoin for another individual or company, you may be the victim of an elaborate scam. 

There are usually two ways people get scammed:

1. Victims are contacted via email or phone and suggested a job opportunity, and are then e-transferred large sums of money to their bank account (usually around $3K). They are then asked to withdraw the cash (leaving some minor amount as fee for work) and use it to purchase bitcoin as part of an employment application process (usually via bitcoin ATM), or deposit funds to particular bitcoin QR address, which is the same.

The thieves usually offer a reward of $50-$100 for the victim's assistance. A few days later the money sent via the e-transfer is linked to a stolen bank account and the transfer is reversed, leaving the victim with a negative balance and no bitcoins.

Source: Krebs on Security article. Here is one of many posts on reddit with details of how a person was scammed.

2. Another common scam is over an unbelievably cheap offering, like a used car listing on Craigslist or Ebay. These ads are on fake Ebay and Craigslist accounts. 

The person is then asked to make a bitcoin payment to the given QR code, and usually bitcoin ATMs or Western Union/Moneygram are used as a medium to make such payment. After bitcoins are sent seller disappears leaving the customer without funds, as bitcoin payments are not reversible.