9 Oct, 2019

Four Youths Wanted After Bitcoin ATM Fraud

Four men from Canada are now wanted for executing a bitcoin fraud at a bitcoin ATM recently. The men are currently on the run, and Calgary police are looking for them. The fraud was estimated to be valued at $200,000 and the investigation has been going on since October 2018.

As per a local news portal, officers were tipped off to a major fraud involving transactions that targeted a Canadian bitcoin company. The portal further reported that for 10 days in September 2018, police believed 112 fraudulent transactions were made at bitcoin kiosks in seven cities across the country, with about half taking place in Calgary. Other targeted cities include Toronto, Montreal, Winnipeg, Sherwood Park, Ottawa and Hamilton.

While bitcoin double-spending is not much heard of, it is not completely impossible. The fact of the matter remains that cryptocurrency of any kind is susceptible to double-spending, including bitcoin. That is why services ask for multiple confirmations for every transaction. For instance, the norm is 3-4 confirmation for BTC and 25 for ETH. In this case, the ATM’s would’ve given out money as soon as it detects a transaction, without waiting for confirmations, also known as zero confirmation.

The portal further stated that each of the four suspects are accused of attacks in specific cities, which are listed below:Suspect One: Toronto, Montreal, Ottawa and Hamilton.
Suspect Two: Calgary.
Suspect Three: Winnipeg.
Suspect Four: Sherwood Park.

Agencies including the Toronto Police Service, Hamilton Police Service, Winnipeg Police Service and Halton Regional Police Service are assisting CPS.

There may have been news about bitcoin double-spending in the past, but they were mostly far and few. In the recent past, there were multiple cases of Bitcoin Gold experiencing double-spending attacks. Last year Bitcoin Gold had issued a statement confirming the attack saying, “We’ve been working at an incredible pace the past days to put the plan and pieces together, and we expect to upgrade our mainnet approximately seven days after the necessary software is up and running on our testnet. While it would be better to give all our partners more than seven days to test and deploy to avoid disruption, these attacks have already forced disruption on us all, so we feel it’s best to get the upgrade completed as soon as we possibly can.”