Bitcoin ATM Scams Cost Americans Over $10 Million Per Month in 2024
Over the past three years, there has been a sharp increase in Bitcoin ATM (BTM) scams, with victims primarily over the age of sixty. In a recent analysis, the Federal Trade Commission (FTC) reported that between 2020 and 2023, the number of BTM scams grew tenfold.
Americans lost $65 million to BTM fraud in the first half of this year alone, and the real figure was probably considerably higher because of unreported cases. Notably, a startling $10,000 loss on average has been documented during the last half-year.
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Impersonation and Intimidation
Scammers typically pose as tech support agents, government authorities, or corporate entities in the majority of BTM scam reports. Almost half of these scams start over the phone, but victims are also tricked by pop-ups, emails that appear to be from Microsoft or Apple, and bogus security alerts that appear online.
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Scammers use a variety of strategies to trick their victims. To settle bills, for instance, some pretend to be government representatives or utility companies and demand payment through a nearby BTM. Some impersonate bank employees or federal authorities, scaring victims into thinking their accounts are being attacked and that they should be moved to a “secure account.” These are only a handful of the techniques con artists employ to deceive their victims.
BTM Location Preferences and Evolving Tactics
Scammers frequently point victims to particular BTM locations, suggesting a preference for particular operators, the Federal Trade Commission cautions. These inclinations change over time, perhaps as a result of fresh fraud protection strategies that bitcoin companies launch. Usually, con artists provide their victims QR codes to scan at BTMs, which sends the money directly to the scammer’s wallet, regardless of the operator.
Prime Targets
As expected, older adults are the primary victims of BTM scams. The FTC reports that $46 million of the total losses involving BTMs in the first half of 2024 – 71 percent of the overall amount—came from individuals over 60. For those between 18 and 59 years old, cryptocurrency fraud losses mostly stem from fake investment opportunities.
Protecting Potential Victims
Since it’s frequently impossible to get back money lost in BTM scams, it’s imperative that you alert elderly people you know about them. In order to warn consumers about potential fraud, BTM operators and the establishments where these machines are placed – such as supermarkets and convenience stores – should also think about putting up warning signs close to BTMs.
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FAQs
A Bitcoin ATM scam involves fraudsters using Bitcoin ATMs (BTMs) to trick victims into transferring money to their accounts, often by impersonating government officials, businesses, or tech support representatives
Be cautious of any unsolicited requests for payment through a BTM, especially from someone claiming to be a government or business representative. Always verify the legitimacy of the request before making any transactions
Older adults, particularly those over 60, are the most common targets of Bitcoin ATM scams, accounting for 71 percent of reported losses in the first half of 2024.
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