Posters near bitcoin ATMs are deceiving users into giving their bitcoin away.

The Winnipeg Police Service (WPS) Financial Crime Unit has identified a recent scam in Winnipeg involving bitcoin ATMs.

WPS says the posters are,"Informing users the Bitcoin ATMs are in the development of new software.

"Users are advised not to use their own bitcoin wallet to purchase and deposit bitcoin. They are directed to deposit purchased bitcoin into a wallet identified through a QR scan code on the poster."

Unbeknownst to them, the users are purchasing bitcoin with their own money, giving the bitcoin to someone else, and are unable to retrieve these funds after completing the transaction.

WPS says, "Investigators have confirmed that these posters have not been put up by the owners/operators of the bitcoin machines."

Users should familiarize themselves with cryptocurrency in general and how transactions work before using a bitcoin ATM.

"You should only purchase and send bitcoin into your own wallet or the wallet of someone you know," says WPS.

"Users should never pay for outstanding bills by sending money through a bitcoin ATM. Government agencies including the CRA, Manitoba Hydro, the Police, and all Banks and Credit Unions do not accept Bitcoin as a form of payment."