This story was originally posted on MyNorthwest.com
Each day, cryptocurrency investments continue to garner mainstream attention and attract new investors; however, it has become increasingly troublesome to keep these digital assets safe.
In Washington alone, $141 million was lost to crypto kiosk scams in 2023. On a larger scale, the FBI reported that nearly $9.3 billion in crypto losses occurred nationwide in 2024, a 66% increase from 2023.
Scammers have also turned to phishing emails and social media, where they pose as established traders and offer exclusive investment opportunities to potential victims. Oftentimes, a scammer will gain the trust of a victim over time and eventually work towards gaining access to the target’s private keys (password).
Alan Draper, Head of Content at Crypto News, stated that a scammer rarely uses actual hacking software and simply takes advantage of a victim who doesn’t know the correct safety steps to protect their assets.
“[Scammers] are rarely hacking systems,” Draper said. “They are hacking people. They build relationships, project success, and exploit trust before asking for money.”
Tips for protecting yourself from scams
To avoid being a victim, Crypto News provided several precautions for novice and veteran crypto investors to take.
“No genuine crypto investment can guarantee profits. If someone promises ‘risk-free’ returns or claims a secret strategy that always wins, it’s almost certainly a scam,” Crypto News stated.
Draper also stated that, “Scammers rely on aspiration and urgency,” adding, “If you’re being rushed to invest because ‘spots are limited,’ walk away.”
The most important security measure is a password or private keys, which can provide complete access to anyone who gets hold of them.
“Private keys and seed phrases should never be shared under any circumstances,” Crypto News stated. “Experts strongly recommend using hardware wallets for long-term storage and enabling two-factor authentication on all crypto-related accounts.”
Crypto News listed a few additional warning signs of a scam:
- Pressure to act quickly
- Requests to move conversations off reputable platforms
- Vague explanations of how profits are generated
- Encouragement to recruit friends or family
“These scams often escalate gradually,” Draper said. “It might start with a small win to build confidence, followed by bigger asks. The moment you feel pressured or confused, it’s time to step back.”
Spokane takes action against crypto scams
In response to the ever-growing number of cryptocurrency scams, the Spokane City Council unanimously voted in June to ban all crypto kiosks, marking Spokane as the first Washington city to take a stand against these scams.
“This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks, and I am proud we are the first city in the state to move this legislation forward,” Spokane City Council Member Paul Dillon stated. “These kiosks have become a preferred tool for scammers looking to defraud unsuspecting victims.”
Cryptocurrency kiosks function like a regular bank ATM, but the kiosks do not dispense physical currency. Instead, users can purchase virtual currency to be stored in a personal crypto wallet or transfer the money anywhere in the world.
Cryptocurrency transfers at a kiosk work by sending purchased coins to a wallet address — represented by a QR code or a string of random letters and numbers — using the cryptographic technology that gives cryptocurrency its name.
Spokane Police Department Detective Tim Schwering claimed that in some cases, scammers posed as law enforcement or IRS employees to coerce their targets to buy cryptocurrencies from the kiosk as a remedy for protecting their money. These scammers often target senior citizens and tell them they could face jail time if they do not comply.
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