Michigan Attorney General Dana Nessel reissued a consumer alert on April 17, warning residents about scams involving Bitcoin ATMs as part of Money Smart Week. The alert highlights that scammers are using these machines to defraud victims, often making it nearly impossible for people to recover their money due to the lack of oversight and regulation.
The issue is important because Bitcoin ATMs have become a tool for criminals involved in fraud and money laundering. Without regulatory protections, consumers who use these machines can lose significant amounts of money with little recourse. “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,” said Attorney General Nessel. “Before taking any action, hang up, breathe, and verify any claims.”
Nessel explained that common scams target older adults through fraudulent calls or messages pretending to be from well-known companies or law enforcement agencies. Victims are told their financial accounts are compromised and must act quickly by withdrawing cash and depositing it into a Bitcoin ATM. Once the transaction is completed, the funds are gone permanently because traditional fraud prevention measures do not apply.
The Department of Attorney General has authority throughout Michigan to safeguard residents according to the official website. The department also advances social efforts such as actions against human trafficking and support for vulnerable populations according to the official website. Dana Nessel serves as Michigan’s 54th attorney general according to the official website.
Nessel advised that no legitimate company or government agency will ever ask someone to deposit money into a Bitcoin ATM and warned against urgent requests designed by scammers. She recommended speaking with banks before making large withdrawals and reporting suspected scams immediately.
Money Smart Week promotes financial literacy until April 21 this year, with additional alerts planned on social media through @MIConsumerWatch on Facebook, Instagram, X (formerly Twitter), and LinkedIn. The Department of Attorney General operates statewide initiatives in public service and protection according to the official website, including drafting laws like Clean Slate in 2019 for expungement opportunities according to the official website.