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News

Bitcoin ATM Scams Are Soaring: FTC Report

September 3, 2024 - Around 2 mins mins to read

Key Points:

  • FTC data shows a sharp increase in Bitcoin ATM scams, with over $65 million lost in the first half of 2024 alone.
  • Older adults, especially those over 60, are over three times more likely than younger individuals to fall victim.
New data from the US Federal Trade Commission shows steep increases in Bitcoin ATM scams, with consumers losing more than $110 million since 2020.
Bitcoin ATM Scams Are Soaring: FTC Report

Read more: Australian Bitcoin ATMs Are Now Seeing Impressive Growth

FTC Sees Rise in Bitcoin ATM Scams

These losses have increased almost tenfold with more than $65 million in fraud happening just during the first six months of 2024.

Worst of all, the figures follow an alarming trend: older adults are more severely affected. Consumers aged 60 and over are at least three times as likely to fall victim to such scams than people from other age categories. The median loss reported by victims for the first six months of 2024 was $10,000, showing just how serious these crimes are.

Most of the Bitcoin ATM scams involve fraudsters posing as some government representatives, corporate representatives, or technical support. The fraudsters make urgent demands for money, pushing their targets to pull cash from bank accounts and deposit it into Bitcoin ATMs. The moment the funds hit deposit and a provided QR code is scanned, the deposited funds end up in the fraudster’s cryptocurrency account, from which the possibility of recovery is next to zero.

Beware of Bitcoin ATM Scam

Bitcoin ATMs are found at busy locations such as convenience stores and filling stations; hence, individuals use it to convert cash into cryptocurrency. Of late, fraudsters have set their eyes on the machines as an avenue to deceive victims into depositing cash on the pretext of protecting their assets.

The FTC urges consumers to be on high alert and provides some tips to avoid the scams altogether: do not click on suspicious links, don’t pull money out because of an unexpected call, text or email, and no one should ever make you think that using a Bitcoin ATM will solve a financial problem or protect it.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.