Some scammers are moving away from gift cards and are adopting a new form of currency — Bitcoin — with which to fool the unsuspecting.
Since April 10, Grand Island police have received two reports of con artists trying to persuade people to send them money via Bitcoin.
On Sunday, a scammer called the Super Saver on State Street trying to commit fraud through Bitcoin. The caller claimed to be from Super Saver’s corporate office.
The scammer told the Super Saver employee to take money from the cash registers and drawers and bring it to the Bitcoin machine at Git’N Split in Grand Island. The employee went to the convenience store but changed his mind, thinking better of it. So Super Saver did not lose any money.
This Bitcoin machine is inside the Git’N Split at 3320 Langenheder St., on the corner of Husker Highway and Highway 281.
But a 61-year-old man did fall victim to a Bitcoin scam. He received a message on his computer that his system had been compromised. He was deceived into sending the con artist $25,000 through Bitcoin.
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“Legitimate businesses will not ask you to deposit money into a Bitcoin machine,” Grand Island Police Capt. Dean Elliott said.
Bitcoin is a decentralized cryptocurrency. Transactions in a Bitcoin network are verified through cryptography and recorded in a publicly distributed ledger, called a blockchain, It is exchanged through a peer-to-peer network without centralized authorities, according to CoinDesk, a media company that focuses on cryptocurrency. It’s the world’s first decentralized cryptocurrency, using blockchain technology to secure and verify transactions, according to CoinDesk.
As far as Elliott knows, the machine at Git’N Split is the only Bitcoin machine in Grand Island.
In recent years, con artists have asked people to buy gift cards and provide them with the serial numbers so they can be cashed. Some criminals prefer Bitcoin because the transactions are more difficult to trace, Elliott said.
Once money is placed into a Bitcoin system, it “can be traded from place to place to place in a matter of seconds or minutes,” Elliott said.
It’s hard for local and state law enforcement to track down Bitcoin information, he said.
One reason criminals are looking at Bitcoin is that it’s unregulated, Elliott said.
The purchase of gift cards is slightly easier to trace because in those cases, bank accounts are involved. “Somebody had to set those up,” Elliott said.
“Don’t get me wrong,” Elliott said. It still takes time to track those transactions down. “But there’s information to be had.”
The machine at Git’N Split, called Bitcoin Depot, looks something like an ATM, only taller.
The company’s slogan is “Bringing Bitcoin to the Masses.”
“With thousands of locations, we are the largest Bitcoin ATM network in North America,” reads the front of the machine.
Also on the screen, it says, “With Bitcoin Depot, there’s no hassle. Just Crypto made easy.”
“Choose from over 7,000+ bitcoin machines across the US and Canada. Our Bitcoin Machines are easy to use. Live customer support via phone, chat, and text,” says the company’s website.
Cautionary advice is clearly visible on the front of the machine.
“WARNING: Have you received a phone call from someone demanding payment in Bitcoin? THIS IS LIKELY A SCAM. All Bitcoin transactions are irreversible. Send to your own wallet only,” the warning says.
“NOT SURE if you are being scammed?” A phone number is provided for assistance.
If you suspect you are being scammed, it’s probably best to get and split.
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