Bitcoin ATM Scams Surge: $110 Million Lost in 2023, Older Hit Hardest

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 Bitcoin
ATMs 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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