Los Angeles Times: Scammers exploit bitcoin ATMs. Will new California laws help crack down on fraud?

Jim Meduri answered a terrifying phone call in January from a man pretending to be his son.

The caller, who sounded on the verge of tears, said he’d been in a car accident. Meduri was convinced his son had been arrested for driving under the influence and injuring a pregnant woman and her daughter.

The San Jose resident later spoke to people impersonating a defense attorney and a courthouse clerk, who told him his son might be sent from the Bay Area to Nevada because of an mpox outbreak at the jail. Panicked and in a rush, Meduri agreed to send bail money through cryptocurrency. The fake lawyer directed Meduri, 65, to an ATM where people can buy the digital currency bitcoin. He inserted $15,000 in cash into the machine, scanned a code provided by the scammers and transferred the money.

When Meduri realized he’d been duped, his money was gone.

“They played on fear and what a parent would do to help their kid, and it was elaborate,” said Meduri, who was able to get most of his money back with help from the Santa Clara County district attorney’s office.