Bitcoin ATM scams are on the rise, with fraudsters increasingly using these machines to target vulnerable consumers. Data from the Federal Trade Commission (FTC) reveals a nearly tenfold increase in scams involving Bitcoin ATMs since 2020. In 2023 alone, reported losses exceeded $110 million.
Emma Fletcher, a senior data researcher at the FTC, explained that scammers are using these machines more frequently to deceive people. “Scammers are using these machines as a way to take money from people more than we've seen in the past,” she told NBC News.
Cryptocurrency Fraud Hits Seniors
Older consumers have been disproportionately affected. According to the FTC, people over 60 are more than three times as likely as younger adults to fall victim to these scams. The scams typically involve fraudsters contacting victims and convincing them to transfer funds via BitcoinATMs under the guise of preventing identity theft or protecting their accounts.
Scams involving cryptocurrency have surged as the value of Bitcoin has increased. Fletcher noted that $2 out of every $3 lost in these scams belonged to someone near or over retirement age. “These Bitcoin ATMs seem to have opened up sort of a gateway for scammers who are after cryptocurrency to target older adults,” she said.
???? Bitcoin ATM Scams Explode by 1,000% Since 2020 ????https://t.co/vsyiEjZ1NqThe FTC warns consumers as scammers exploit Bitcoin ATMs, with losses topping $110M in 2023! Be vigilant—verify all transactions before sending crypto! #BitcoinScams #CryptoFraud #BTC #CryptoSafety pic.twitter.com/Wj5q1yN8G4
— Crypto Update IO ???? (@cryptoupdate_io) September 4, 2024
Scammers Exploit Bitcoin ATMs
Bitcoin ATMs, which resemble traditional ATMs but involve cryptocurrency transactions, have become widespread across the United States.
With nearly 32,000 machines nationwide, up from just over 4,000 in early 2020, their presence in high-traffic locations such as convenience stores, gas stations, and supermarkets has contributed to the rise in fraud, according to federal authorities.
Fraudsters often contact victims by posing as customer service representatives, government officials, or employees of major tech firms. They convince victims that their accounts have been compromised, then send them QR codes connected to digital wallets.
Victims are instructed to scan the code and deposit cash into a Bitcoin ATM, believing they are protecting their assets. In reality, the funds are immediately transferred to the scammer.
This article was written by Tareq Sikder at www.financemagnates.com.
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