Law enforcement in Kent County, Michigan, is warning residents about a surge in cryptocurrency scams, which now account for 75% of fraud investigations. These scams exploit the untraceable nature of crypto ATMs to steal money quickly. Officials urge vigilance against common red flags to avoid falling victim.
In Kent County, Michigan, cryptocurrency scams have become a dominant force in fraud cases, comprising 75% of investigations, according to Scott Dietrich, public information officer for the Kent County Sheriff's Office. Dietrich highlighted the appeal of cryptocurrency to scammers due to its difficulty in tracing. "The reason that [scammers are] doing this is because it's pretty untraceable and it's very instant, and with the availabilities of these ATMs, people can insert cash into it, which is a direct transfer, makes it very quick," he said.
Crypto ATMs, such as those from Bitcoin, Coinflip, and LibertyX, enable users to exchange cash for cryptocurrency and are plentiful in West Michigan, with hundreds available. Scammers often pose scenarios where they claim a victim's bank account is compromised, instructing them to withdraw cash and deposit it into a crypto ATM. Once transferred, the funds are nearly impossible to recover. "Cryptocurrency is difficult to trace, making it 'very rare and very hard' for detectives to get it back," Dietrich explained.
Dietrich identified key red flags, including offers of money requiring an upfront fee or aggressive phone demands like "Don't hang up. Don't talk to anybody else." Primary targets are individuals in their 40s or 50s with stable jobs and ready cash. Nationally, the FBI estimates $65 billion stolen annually through such scams. "As much as we can tell people, you know, 'Watch out for this scam, watch out for this scam,' there's so many that revolve and they're using different ones every week, it seems," Dietrich noted.
Victims are encouraged to report incidents immediately to aid investigations, though recovery remains challenging. Contact the Kent County Sheriff's Office at 616-632-6100.