The US Federal Trade Commission (FTC) reported a huge increase in losses from Bitcoin ATM fraud, nearly tenfold the amount in 2020 and reaching over $110 million in 2023.
See also: Swan Bitcoin warns users about phishing emails
Bitcoin ATMs are typically found in department stores, gas stations , and other busy locations, but instead of dispensing cash like traditional ATMs, they allow you to buy and sell cryptocurrencies.
For years, scammers have used them to trick victims into depositing cash while impersonating law enforcement or government officials. In these incidents, criminals warn targets that their accounts have been compromised and convince them to deposit money to “protect” their savings.
According to the recent FTC report, Americans have already lost $65 million in the first half of 2024 to Bitcoin ATM scams.
Elderly people at greater risk
The FTC warned that consumers aged 60 and older were three times more likely than younger adults to report losses during this period. The average loss reported across all age groups during the first half of the year was $10,000.
See also: Former engineer charged in failed Bitcoin theft attempt
Most Bitcoin ATM fraud losses result from government agency impersonation, business impersonation , and technical support scams. Criminals create urgent scenarios to convince their victims to withdraw cash from their bank accounts and deposit it at a Bitcoin ATM.
However, once consumers scan the QR codes provided by the scammers, their cash is transferred directly to their cryptocurrency wallets.
The FTC also provided some tips to help consumers avoid these scams, such as not clicking on links or responding directly to unexpected calls, messages, or pop-ups on their computer before verifying their legitimacy by contacting the company or service through a number or website.
See also: DMM Bitcoin warns that hackers stole 300 million in Bitcoin
Bitcoin ATM scams have become increasingly prevalent as cryptocurrencies gain popularity. These scams can take a variety of forms, including phishing attacks, Ponzi schemes, and fake ICOs. In phishing scams, individuals may receive emails or messages that appear to come from legitimate exchanges, tricking them into providing sensitive information. Ponzi schemes promise high returns on investments with little risk, but ultimately rely on new investor funds to pay participants early. To protect against these scams, it is important for users to conduct thorough research, verify the legitimacy of platforms before investing, and remain vigilant about unsolicited communications.
Source: bleepingcomputer
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