Putnam Police Warn Of Scams Involving Bitcoin Kiosks

PUTNAM, CT — Local police are warning residents to be aware of a bitcoin scam.

In the past week, police said they have received multiple reports of scams involving bitcoin kiosks.

“Residents are being coerced into depositing cash into cryptocurrency addresses controlled by scammers,” police said, in an announcement. “Once deposited, these funds are generally unrecoverable.”

Police say victims are being contacted via computer alerts and texts.

In one scenario, victims get a phony “Malware Detection” notice on their computer. Scammers then convince victims their bank accounts are compromised, and instruct them to withdraw their funds and deposit the money into a bitcoin kiosk to “secure” it. Instead, the money is transferred to the scammer, according to police.

In another recent scam, victims are getting a text message claiming to be from “Apple Fraud Prevention” claiming there was a suspicious transaction. When the victim calls the provided number, the scammer accesses their Apple account. Scammers then manipulate the account display to show a fake overpaid refund. They tell victims to return the excess money to “Apple,” by depositing money into a bitcoin kiosk, according to police. Again, the money ends up being stolen by the scammers.

To avoid being victimized, police advised residents to never use contact information included in a suspicious text or message. Instead, go directly to a company’s official website to get contact information. Police said companies will never ask anyone to resolve a security issue or return a refund with a bitcoin kiosk. Government agencies do not instruct people to liquidate assets, purchase cryptocurrency or request payments through gift cards, police noted.

“The Putnam police strongly encourage residents to contact the police before providing any information to phone or email solicitors related to personal identifying information, credit card accounts, or bank accounts,” police said.

If you believe you have been victimized, contact local law enforcement.