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Cops warn of bitcoin ATM scam in Canada

August 30, 2019

Fraudsters have been targeting bitcoin ATM users in Winnipeg by hanging posters saying the machines were out of use.  

Police issued a warning Thursday that following the instructions on the scam posters could lead to their bitcoin getting deposited in the scammer's account — with no way to recover them.

Bitcoin Scam Warning
The WPS Financial Crime Unit has identified a recent scam in Winnipeg involving bitcoin ATMs. Investigators have confirmed that these posters have not been put up by the owners/operators of the bitcoin machines.
Read more:https://t.co/086COVRfg3 pic.twitter.com/QwYlNEleXm

— Winnipeg Police (@wpgpolice) August 29, 2019

The posters, which were plastered on or near the machines, claimed the bitcoin ATMs were developing new software and advised users not to use their own QR code but to scan the QR code on the poster.  Following the instructions prompted buyers to give their bitcoin to someone else.

The posters were found at two of the 20 bitcoin ATMs in Winnipeg. Thursday, the police told local news that, so far, no one had reported falling victim to the latest scam. 

Bitcoin transactions are irreversible meaning that if a user inadvertently sends their bitcoin to the wrong address, the funds are as good as gone.

"Before using a bitcoin ATM, you should familiarize yourself with cryptocurrency in general and how transactions work. You should only purchase and send bitcoin into your own wallet or the wallet of someone you know," Winnipeg police said in the statement.