Michigan Attorney General Dana Nessel reissued a consumer alert on April 17, warning residents about the risks of Bitcoin ATM scams as part of Money Smart Week. The alert comes amid concerns that scammers are increasingly using these machines to defraud people, especially older adults, by exploiting the lack of oversight and regulation.
The issue is significant because money sent through Bitcoin ATMs is nearly impossible to recover, making them an attractive tool for criminals involved in fraud and money laundering. Nessel said, “If you receive a call from someone claiming to be from an agency or company who demands you use a Bitcoin ATM to pay a fine or bill, it is most certainly a scam. Before taking any action, hang up, breathe, and verify any claims.”
According to the alert, scammers often pose as representatives from well-known companies or law enforcement agencies and claim that victims’ financial accounts have been compromised. Victims are instructed to withdraw large sums of cash and deposit them into a Bitcoin ATM; once converted into cryptocurrency and sent via QR code or receipt image to the scammer, the funds are lost permanently. Unlike traditional bank transfers or credit card transactions—which have fraud prevention measures—Bitcoin ATM transactions do not offer such protections.
The Michigan Department of Attorney General has emphasized its role in advancing social efforts through actions against human trafficking and supporting vulnerable populations according to the official website. The department also focuses on serving Michigan residents through public service initiatives aimed at protection according to its official website. Dana Nessel serves as Michigan’s 54th attorney general according to the official website.
To avoid falling victim to these scams, officials advise never depositing money into a Bitcoin ATM at someone else’s request; being wary of urgent requests; not trusting caller ID; avoiding unknown software downloads or remote access requests; consulting with banks before making unusual withdrawals; and reporting suspected scams immediately. The Department operates with statewide authority to protect residents across Michigan, having influenced policy such as drafting the Clean Slate law in 2019 for expungement opportunities according to its official website.
Money Smart Week runs until April 21 with ongoing alerts posted by @MIConsumerWatch on social media platforms including Facebook, Instagram, X (formerly Twitter), and LinkedIn. Residents can contact the Consumer Protection Team for more information or file complaints online.