Thursday, August 8, 2019

Bitcoin ATMs Used In Utility Scam In LA

In a rather nefarious use for Bitcoin, the Los Angeles Police Department (LAPD) issued a warning on Thursday that scammers have been using "Bitcoin ATMs" to scam LADWP customers out of money. The scammers are contacting customers, and tell them that owe money to the utility and can only pay it using the ATMs. According to the Northeast Area LAPD, suspects claiming to be from the Los Angeles Department of Water and Power have been contacting victims via telephone and/or text message, and are told that their utilities will be shut off due to an unpaid bill. When those victims respond, they are sent a "QR" code--which links to the scammer's account--and told to "pay for the utility" at those Bitcoin ATMs. Bitcoin ATMs exchange cash for Bitcoin credits; the QR in the scam is being used to direct a payment to a specific Bitcoin "wallet" owned by the scammer.