Fort Worth Woman Falls Victim to bitcoin Scam: A Cautionary Tale

The Encounter at the bitcoin ATM

Kayren Harter found herself at a bitcoin ATM in a Fort Worth convenience store, inserting $100 bills into the machine. The process was straightforward: cash in, bitcoin out, ready for global transactions.

On the other end of her phone, a man claiming to represent Wells Fargo insisted she needed to transfer $40,000 in bitcoin. Despite a nagging feeling to reconsider, Harter proceeded.

The Deceptive Scheme Unfolds

The scammer spun an elaborate tale, claiming that an email from the bank warned her of dire consequences if she failed to act quickly. Allegations of tax evasion and even links to China added to her anxiety.

Feeling pressured, Harter rushed to Bank of America, withdrawing $40,000 in cash, which she stuffed into a thick envelope.

A Moment of Clarity

After spending an hour at the ATM setting up her account and feeding in $10,000, Harter recalled Nathan Martin, the assistant district attorney for Tarrant County, who had previously spoken to her women’s club about rising scams.

She reached out to Martin, explaining her situation.

Urgent Intervention

“Stop!” Martin exclaimed. “Call the police,” which she promptly did.

He quickly gathered two investigators from the district attorney’s office to assist.

Law Enforcement Arrives

When Fort Worth police officers responded to the 911 call, they joined Martin and his team, totaling five law enforcement officials at the scene.

Martin noted Harter’s expression of regret, feeling she had disappointed him despite attending two informative lectures on scams.

The Investigation Begins

A detective assigned to the case contacted Athena bitcoin, the company behind the ATM. The detective sought to retrieve the $10,000 Harter had already transferred.

Initially, the company refused to cooperate, but after the detective threatened to obtain a search warrant, they agreed to open the machine.

A Glimmer of Hope

Although the transaction had been completed, the detective successfully retrieved $10,000, which was logged into the Fort Worth Police property room.

Harter expressed disbelief at her own actions, stating, “I can’t believe I did this. It’s so out of character for me.”

The Scammers’ Tactics

Harter described the scammers as highly skilled, noting that their responses to her questions were convincing and well-articulated.

Understanding bitcoin Transactions

Purchasing bitcoin through an ATM is not as simple as buying groceries. It requires scanning identification and entering codes on a mobile device.

Users must also generate and securely store a series of security phrases; losing them means losing access to the funds permanently.

Harter was unaware of these complexities when she began her transaction.

Regret and Reflection

With $30,000 still in her possession, police escorted Harter back to her bank to deposit the remaining cash.

Regarding the $10,000 in the ATM, a customer service representative from Athena expressed regret but stated, “We cannot halt a transaction. Please report it to law enforcement and follow the necessary procedures.”

Legal Proceedings

To reclaim her funds, Harter needed to persuade a magistrate to release the money from police custody.

Athena enlisted former prosecutor Cody Skipper to contest the claim. Harter, lacking legal representation, received assistance from Martin during the hearing.

Martin highlighted that the Federal Trade Commission has labeled bitcoin machines as potential tools for scammers.

Skipper proposed a $2,000 settlement, representing Athena’s profit from the transaction, which Harter declined—a decision she later regretted.

The Court’s Decision

Skipper argued that Harter bore responsibility for the incident, stating, “She had two training sessions.”

He maintained that Athena acted within legal and ethical boundaries.

Ultimately, the magistrate ruled in favor of Athena, leaving Harter without her money.

A Lesson Learned

Harter expressed feelings of disappointment, stating, “I feel like I let him down. I can’t believe how foolish I was. But I’ve learned a significant lesson.”

She added, “I still can’t believe this happened. It feels surreal.”

Martin remarked, “This motivates me to continue educating the community.”

Important Safety Tips

• Avoid clicking on links or responding to unsolicited calls, messages, or pop-ups. If something seems legitimate, contact the company directly using verified contact information.
• Take your time. Scammers often try to rush you into making decisions.
• Never withdraw cash based on unexpected requests. Only scammers will instruct you to do so.
• Be wary of anyone suggesting you use a bitcoin ATM, buy gift cards, or transfer money to resolve an issue. Legitimate businesses and government agencies will never ask for such actions.

By following these guidelines, individuals can better protect themselves from falling victim to scams.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.