PERSPECTIVES FROM THE FIELD
The strength of Indiana is that we bring together a variety of perspectives from the plethora of areas that touch the field of cyber, especially through the Indiana Executive Council on Cybersecurity (IECC). Hence the name "Perspectives From the Field Series" in which we invite experts to discuss the real and challenging issues we are facing in the field and the proposed solutions from the experts to better the lives and businesses of all Hoosiers.
In the second of a three-part blog series, members of the Council’s Finance Committee share their knowledge and expertise about the emergence of Bitcoin ATM machines, the scams that are happening when they’re being used and why – beginning very soon – they’ll be disappearing from the retail locations they’ve occupied in convenience stores, gas stations, smoke shops and liquor stores throughout the Hoosier state.
Providing their perspective is Joe Henrich, who serves as the senior vice president of technology for Horizon Bank and Brian Avery, who is the chief technology officer at Star Bank.
By Joe Henrich and Brian Avery
Seventeen years after the first transaction involving Bitcoin was completed, cryptocurrency is continuing to be used for a myriad of legitimate transactions globally, as well across the country and here in Indiana.
Unfortunately, it is the Bitcoin ATMs that are being used, with increasing frequency, by cybercriminals to target their victims. Currently, there are 45,000 Bitcoin ATMs in the U.S., and according to the Federal Bureau of Investigation (FBI), in 2024, reported that scams perpetrated using bitcoin ATMs cost Americans nearly $250 million – a figure that is more than double the sum from the previous year.
How do they do it?
Scammers rely on urgency, fear, and secrecy to manipulate their victims. If you receive a message or come into contact with someone who suggests using bitcoin as a form of payment, there are several specific signs you should look for, including:
- A request for cryptocurrency payment: No legitimate organization will ever demand payment for a fine, bill, or fee using cryptocurrency, gift cards, or wire transfers.
- High-pressure tactics: Any demand for "immediate action" or threats of legal trouble, arrest, or account closure is a clear sign of a scam.
- Unexpected contact: Be wary of unsolicited calls, texts, emails, or pop-ups from someone claiming to be from a government agency (like the IRS or FBI) or a utility company.
- Instructions to withdraw cash: Scammers will often tell you to empty your bank account and then stay on the phone with you to guide you through the Bitcoin ATM deposit.
- Demands for secrecy: If you are told to lie to your bank teller about why you are withdrawing a large sum of money, you are being scammed.
- Guaranteed profits: Any investment opportunity involving a Bitcoin ATM that guarantees high or quick returns is likely a fraud.
As part of the most recent legislative session, the Indiana General Assembly passed a law banning the use of Bitcoin ATMs in the Hoosier State. Signed into law by Gov. Mike Braun, Indiana became the first U.S. state to enact a full statewide ban on cryptocurrency ATMs (kiosks) through House Enrolled Act 1116.
Additionally, there are steps you can take to protect yourself, such as:
- Slow down and verify. Scammers want to rush you into a panicked decision. If you receive a call, hang up and call the organization back using a phone number you know to be real, such as the one on their official website.
- Talk to someone you trust. Before you act, discuss the situation with a trusted friend, family member, or a bank employee.
- Do not send money. Never send Bitcoin or other cryptocurrency to someone you do not know personally. Since cryptocurrency transactions are irreversible, you will not be able to get your money back.
- Be cautious online. Do not click on unexpected links in emails or texts and never give personal information to unsolicited contacts.
- Report scams. If you suspect you've been targeted, visit the Report a Cyber Incident page on the Indiana Cybersecurity Hub website and there you’ll find the steps to follow to report the incident. You can also file a report with the Federal Trade Commission.
In today’s digital world, managing our personal and financial information is more challenging than ever, but there are trusted resources – within your local bank or credit union – to help make sure that your money and your data is secure.