Bitcoin scam reported in Riverbend
EDWARDSVILLE — Area law enforcement is seeing an increase in reports of Bitcoin crimes.
“With the addition of Bitcoin ATMs in the area, we’re starting to see people getting scammed,” said Edwardsville Dep. Chief of Police, Michael Lybarger. – The problem is going to get worse.
Bitcoin is a decentralized digital currency, or cryptocurrency, that can be transferred on the peer-to-peer Bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a publicly distributed ledger called a blockchain.
There are currently several Bitcoin ATMs in Riverbend.
“The Bitcoin ATM makes it easy for anyone, even people with no knowledge of Bitcoin, to acquire it,” Lybarger said.
“If someone calls or emails you, don’t go to a Bitcoin ATM and get Bitcoin sent to them,” he said. “This is just a new twist on an old scam. It’s easier to send Bitcoin than cash [gift] card and there is less risk for the criminal.”
Bitcoin ATMs are kiosks that allow a person to purchase Bitcoin using a vending machine. Some Bitcoin ATMs offer two-way functionality, enabling both the purchase of Bitcoin and the sale of Bitcoin for cash. Bitcoin machines are not the same as traditional ATMs, but work in the same way.
According to Norton.com, people should be on the lookout for red flags that may indicate a cryptocurrency scam. Examples include if an offer seems too good to be true, a website’s address bar does not begin with “HTTPS”, the payment request is urgent, payment is requested in cryptocurrency, or your account is requested.
According to the Federal Trade Commission, 14% of all reported losses are to cryptocurrency fraud. Cryptocurrency scams have increased by 516% from 2020 to 2021, and investors in the 20-30 age group are the most vulnerable to being scammed.
There are ways to avoid cryptocurrency scams. Consumers can research before investing money in cryptocurrencies. Those who believe they may have been targeted by a cryptocurrency scam should report it to the Federal Trade Commission, the Securities and Exchange Commission (SEC), or the Commodities Futures Trading Commission.
Unfortunately, there are few options to potentially recover fraudulent cryptocurrency.
Bitcoin usage began in 2009 when its implementation was released as open source software. A few governments officially use Bitcoin in some capacity: El Salvador and the Central African Republic have adopted Bitcoin as legal tender, while Ukraine is accepting Bitcoin donations to fund its resistance to Russia’s invasion this year.
Just as dollars are divided into smaller units, so is Bitcoin. However, cryptocurrency is constantly changing its market value, unlike the dollar. One bitcoin is divisible by eight decimal places. Units for smaller amounts of Bitcoin are the millibitcoin (mBTC), equal to 1⁄1000 bitcoin, and the satoshi (sat), which is the smallest possible division, and named as a tribute to bitcoin’s creator, representing 1⁄100000000 (one hundred millionth). ) bitcoin. 100,000 satoshis are one mBTC.
