(Radio Iowa) – Automatic teller machines that are only for cryptocurrency transactions, also known as crypto or bitcoin A-T-Ms, are popping up all over Iowa, and if you’re not careful using them, it could be a very expensive lesson. James Johnson, superintendent of banking with the Iowa Department of Insurance, says investing in crypto is becoming very popular and there are nearly 400 bitcoin A-T-Ms in the state now, including 25 just in Des Moines. “Obviously, with the trend of cryptocurrency, you’re seeing a surge in the availability of the ATMs,” Johnson says. “On the surface, if you’re using them, that’s great, if that’s what you’re wanting to do, as long as you’re putting it in your wallet or your account. The problem we see is that, just like with any financial instrument, scammers find ways to get people to use them for their own gain.”

The Federal Trade Commission says consumers reported losing more than 100-million dollars in crypto scams last year. Johnson says crooks are capitalizing on the accessibility of the A-T-Ms, enticing Iowans into using the machines to transfer cash to digital wallets which the scammers control. “Whether it’s the social media scams, or romance scams, you have a toll scam, whatever it is, they’ll engage someone and try to pressure them through a sense of urgency,” Johnson says. “I think some of the uncertainty that people have with these crypto ATMs, they use them not understanding the full reality of what’s going on, and the fact that they are sending that money to a scammer and they will not get it back.”

Johnson says it’s vital that Iowa consumers understand what cryptocurrency A-T-Ms are, how the scams work, and what they can do to protect themselves.  “Talk to people. That’s the biggest thing. If you have questions, talk to people that you know, start there. Find trusted advisors. Talk to them. Talk to your banker, talk to your financial planner,” Johnson says. “Just reach out to someone that’s an expert that you know and have them help you go through this.” The scams often start through chats, social media, emails, texts, computer pop-ups and phone calls from strangers. Johnson says scammers often pose as a government official who claims to be trying to help the victim transfer funds to keep them safe. “With anything, if you question whether it’s real or not, take a step back, seek guidance, reach out to an expert,” Johnson says. “We have a website, iowafraudfighters.gov, which has a lot of information for Iowans that may be questioning something, and it has a lot of scams that are out there, examples, some cases where people have been taken advantage of.”

Johnson warns to never withdraw cash in response to an unexpected call or message, as only scammers will tell you to do that, and don’t believe anyone who says you need to use a crypto A-T-M to protect your money, fix a problem, or to get a great return on investment.