Source: Attorney General’s Office
In an impersonation scam, scammers pose as law enforcement, the IRS, pension agencies, utility companies, established businesses, financial institutions, or similar organizations. Under these guises, scammers create a false sense of urgency by claiming that the victim needs to settle debts (e.g., pay taxes or an outstanding bill). The scammers often threaten their victims with imprisonment or other penalties unless the victims pay the debt by sending cryptocurrency purchased at a cryptocurrency kiosk. A cryptocurrency kiosk (also referred to as a “crypto ATM”) is a physical machine that enables you to convert cash to cryptocurrency and send it to yourself or other people.
How to Spot and Avoid an Impersonation Scam:
- Remember, no company, government agency, or other entity will demand payment in cryptocurrency.
- If someone tells you that the only accepted payment method is cryptocurrency, they are almost certainly a scammer.
- If you get a call from someone who claims you owe a debt, contact the published customer service phone number of the agency or business to confirm the identity of the caller and whether there is in fact an outstanding debt.
- It’s risky to send cryptocurrency using a kiosk and can be expensive. Think twice before doing it.