Behind the company with 37,000 ATM bitcoin machines around the world
After last month’s Watchdog report on the Fort Worth woman conned into depositing $10,000 into a convenience store’s bitcoin ATM, several readers reached out wanting to learn more.
They wanted to know more about Athena Bitcoin, the Miami-based company that owns the machine. And they asked a broader question: If, as the Federal Trade Commission warns, these ATMs are “a payment portal for scammers,” why isn’t the industry more tightly regulated?
Steven Foxall of Dallas told me, “I find it rather sad that the authorities responsible for law and order inquiries are allowing this company to be active in Texas and indeed the United States.”
Stephen James Raynor of Dallas said, “I fault local governments for allowing these machines anywhere near the public. It’s Monopoly money not backed by the full faith and credit of any government.”
Are you a taxpayer in Texas? The Watchdog has your back.
There is no evidence that Athena was part of these scams — only that their machines were used. Athena reports that it has 800 bitcoin ATM’s in Texas — 22% of its global inventory.
No one from Athena would talk to me for this story. But Anthony Durant of Athena customer service, told me last month, “There’s no way we can stop a transaction. Report it to law enforcement and the FBI, and follow proper procedures.”
Over and over
Incidents like the one involving the Fort Worth woman are happening all over the nation.
In Minersville, Pa., two residents lost a combined $34,000 they stuffed into a machine in the town’s general store. In response, police blocked access to the machine with evidence tape, according to RepublicanHerald.com.
In Boynton Beach, Fla., a woman, posing as a sheriff’s deputy convinced a woman to put $8,000 into a machine.
In New Smyrna Beach, Fla. a woman, whose husband had recently died, received a call from a fake FBI agent who convinced her to transfer $20,000 into bitcoin and send it to them.
In Silver Spring, Md., a woman sued Athena, citing in court papers that she lost $13,000.
In a Florida lawsuit, the National Law Review reports, Athena is charged with “deliberately targeting low-income and unbanked populations.”
Some CVS stores, as an example, host Athena ATM’s. CVS spokesperson Kara Page told me, “We offer traditional ATM services, which include limited bitcoin functionality for eligible bitcoin users at many CVS Pharmacy locations nationwide as a convenience to our customers.”
The Feds
What is the federal government doing? Not much.
Seven Democratic U.S. senators wrote a letter to Athena asking them and nine other companies to get tougher on crooks and stop “widespread financial fraud against elderly Americans.”
Locally, few cities follow the lead of Stillwater, Minn., which banned the machines.
Minnesota also passed a new law that requires these ATM operators to issue refunds to new customers caught in a scam and limits users to a daily limit of $2,000.
In Vermont, a new law caps the daily limit for newcomers to $1,000. Operators must get a license and register each machine with the state.
In the Texas Legislature, two bills were introduced to regulate the industry.
House Bill 2798 required a warning about potential fraud on the machine’s screen and mandates a receipt showing interest and fees paid. If fraud is involved, the customer is entitled to a refund. A daily transaction limit is set at $2,000.
Senate Bill 1705 is similar.
Both bills died this year.
Criticism of the machines is not a “broad indictment on cryptocurrency,” Tarrant County Assistant District Attorney Nathan Martin told me. “It’s just the ease which they can get these older people to put their money in these machines.”
Athena’s motto is “the most trusted name in Bitcoin ATM’s.”
Uh, I don’t think so.
SIDEBAR
Don’t be a victim.
If any financial business calls you, even if they claim to know your account number, hang up and contact the institution directly.
Assume that anyone who contacts you unexpectedly by door-to-door visit, postal mail, e-mail, phone, text or social media — with any kind of a financial deal, may be up to no good.
Don’t trust the first numbers that show up in a Google search (especially those for Apple support). They could be fake.
The best phone number is the one on your financial statement.
If you are victimized, file complaints with your local police department, federal officials at ic3.gov and the Federal Trade Commission.
If someone calls and tries to get you to a bitcoin ATM or a store that sells gift cards, hang up.
Have a secret family code word. If, for instance, someone in your family calls and says they need financial help, ask for the family code word. If they don’t know it, hang up. Don’t put the code in writing or anywhere on the Internet.
Content Original Link:
" target="_blank">