Attorney General Jackson and Secretary Marshall Announce Initiative to Combat Crypto Scams

North Carolina Launches Statewide Initiative to Combat Cryptocurrency Scams

Attorney General Jeff Jackson and Secretary of State Elaine Marshall have unveiled a comprehensive statewide campaign aimed at curbing bitcoin and cryptocurrency ATM scams. Recognizing the complexities of regulating a rapidly evolving and decentralized crypto industry, the initiative is a collaborative effort involving AARP, the Wilmington Police Department, and United Way NC/NC 211. This move comes amid anticipated resistance from crypto-friendly stakeholders and industry actors concerned about increased regulatory scrutiny. With annual losses from cryptocurrency-related fraud approaching $6 billion, officials stress the urgent need to shield North Carolinians from scams that can devastate personal finances and are notoriously difficult to resolve.

Addressing the Growing Threat of Crypto Scams

Victims of these scams often suffer losses exceeding $100,000, with recovery of funds proving nearly impossible. Attorney General Jackson highlighted the severity of the issue, stating, “We’re hearing devastating reports of people losing their life savings through a crypto ATM scam. That’s why we’re working with partners across the state to help people recognize the signs of these scams. We want to help people protect their money from scammers.” Secretary of State Marshall echoed this concern, emphasizing the importance of public awareness. “With annual losses in cryptocurrency-related financial fraud approaching $6 billion, the Secretary of State’s Office is proud to join forces with these great partner agencies in raising public awareness. It’s crucial that North Carolina’s investing public have the tools to spot, stop and report scams related to cryptocurrency ATMs.”

David Kirkman, an AARP volunteer, underscored the challenges posed by the payment methods used in these scams. “When it comes to scams, one of the largest common denominators is the payment method where people are asked to pay in bitcoin making it nearly impossible to recover any money lost. That’s why increased education and awareness is vital,” he said. Kirkman added that vigilance and knowledge of red flags, such as demands for bitcoin payments, are essential defenses against scammers.

Community Support and Resources

Brittany Pruitt Fletcher, President and CEO of United Way NC and NC 211, described how scammers are rapidly adapting their tactics to exploit vulnerable populations. “At 211, we’re seeing firsthand how scammers are evolving—and how quickly they’re targeting vulnerable North Carolinians through tactics like cryptocurrency ATM fraud,” she said. Fletcher highlighted the role of 211 as a resource where residents can connect with trained specialists who provide guidance on suspicious situations and facilitate contact with law enforcement or consumer protection agencies. She expressed pride in being part of the statewide effort to raise awareness and protect communities.

Understanding Cryptocurrency ATM Scams

Cryptocurrency ATMs, commonly located near convenience stores, gas stations, and smoke shops throughout North Carolina, have become a focal point for fraudsters. Scams typically involve directing victims to use these ATMs to convert cash or bank funds into cryptocurrency, which is then transferred to the scammer’s account. Once the scammer obtains the cryptocurrency, they convert it back into cash, effectively stealing the victim’s money. These scams often involve scammers cultivating emotional or romantic relationships with their targets to gain trust and facilitate the fraud.