Hong Kong police have arrested three men in connection with a HK$230,000 (US$30,000) Bitcoin ATM scam. The authorities believe that these three men are part of a larger group.
August 18, 2020 | AtoZ Markets – As crypto scams around the world continue to trick people in parting with their hard-earned money, Hong Kong police have arrested three men who are allegedly tied to a HK$230,000 (US$30,000) bitcoin scam.
Per the South China Morning Post report, the three men are believed by authorities to be part of a larger group that has scammed bitcoin ATMs out of the thousands of dollars.
Bitcoin ATMs scam is the first case of its kind in Hong Kong
The Hong Kong Bitcoin ATMs scam, which the media outlet claims to be the first case of its kind in the city, has come to light after two cryptocurrency exchanges filed reports recently. The reports by the exchanges claimed that the fraudsters exploited loopholes in the Bitcoin ATMs that enabled them to withdraw funds without official authorizations.
Bitcoin ATMs in the city enables authorized personnel to purchase bitcoin by cash or credit card. In some instances, the machines will also allow crypto to be sold for cash. According to the report, police have refused to elaborate further on how exactly the scammers could exploit the machines’ loopholes.
Crypto scams surge amid the covid-19 pandemic
Crypto scams continue to rise amid the global pandemic across countries. Earlier, the Attorney General of California issued a warning against the rise of crypto scams amid the covid-19 pandemic. California’s Attorney General Xavier Becerra tweeted:
“Fraudsters often rely on the excitement of innovative industries to persuade people to offer up their cash in hopes of earning far more in return.”
There are several types of crypto scams that have become frequent. They include fake giveaways, sextortion, fake exchanges, fake ICO’s, bitcoin recovery, video scams, as well as pyramid schemes. For example, accounts of several famous people on Twitter were hacked to solicit bitcoins from their followers.
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