Bitcoin ATM scams rise 10x, $110M losses reported In Two years

The U.S. Federal Trade Commission (FTC) has reported a sharp rise in scams involving Bitcoin ATMs, with losses increasing tenfold between 2020 and 2023. In 2023 alone, Americans lost over $110 million to these schemes, a notable jump from previous years.

FTC data reveals that individuals aged 60 and above are the most frequent victims, more than three times as likely to fall for these scams as younger people. Emma Fletcher, a senior data researcher at the FTC, noted that crypto criminals increasingly use Bitcoin ATMs.

Cryptocurrency ATMs, which resemble conventional machines but allow crypto transactions, have surged in the U.S. in recent years. Since early 2020, their numbers have skyrocketed from about 4,000 to 32,000, popping up in convenience stores and gas stations. This rise has indirectly contributed to an increase in fraud.

Scams usually start when fraudsters pose as customer service agents addressing fake security issues. They send victims a QR code that, when scanned at a Bitcoin ATM, prompts them to deposit cash into the scammer’s digital wallet. The cash is converted into Bitcoin and transferred instantly, making the victim believe their money is secure.

Bitcoin ATM fraud prevention requires vigilance.

These schemes are becoming more sophisticated. Scammers might impersonate employees of major tech companies like Apple or Microsoft, or even government officials, to deceive victims. The dark web, where personal information is easily traded, has further fueled these fraudulent activities.

The value of BTC has doubled to almost $60,000 in just a year, which has increased the amount of fraud using cryptocurrencies. According to the FTC, two-thirds of BTC ATM fraud victims are already in or close to retirement.

Bitcoin ATM operators, like Bitcoin Depot, assert that they have safeguards against fraud and offer customer assistance. However, the best defense against more sophisticated fraud is to be on the lookout for it. Fletcher suggests people hold off on making Bitcoin ATM transactions until they have checked any questionable inquiries.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.