FTC Alerts a Surge in Bitcoin ATM Scams Citing Record Highs in Loses

The Federal Trade Commission (FTC) has issued a warning regarding the alarming rise in scams associated with Bitcoin ATMs, detailing an almost tenfold increase in reported losses since 2020, with victims losing over $110 million in 2023 alone. In the first six months of 2024, losses have already surpassed $65 million, with individuals over 60 years old being particularly vulnerable and losing money three times more often than younger adults. Typically located in high-traffic areas such as convenience stores and gas stations, these ATMs do not dispense cash. Still, they are used for buying and selling cryptocurrency, a process that scammers have exploited.

Scammers employ various tactics to orchestrate these scams, often starting with a call or message warning the victim of suspicious activity or unauthorized charges on their account. According to the FTC, "Others get your attention with a fake security warning on your computer, often impersonating a company like Microsoft or Apple. These things are hard to ignore, and that's the point. From there, the story quickly escalates. They might say all your money is at risk, or your information has been linked to money laundering or even drug smuggling." Victims are manipulated into withdrawing cash from their bank accounts and depositing it into Bitcoin ATMs, where they are instructed to scan a QR code that sends their funds directly to the scammer's cryptocurrency wallet.

The FTC's latest report highlights the sophisticated nature of these scams, which frequently involve impersonating government or business officials and creating a sense of urgency to trick victims into acting hastily. To combat these scams, the FTC advises individuals to never click on unsolicited links or respond directly to unexpected communications without verifying the legitimacy of the contact. They recommend slowing down to evaluate the situation, discussing it with a trusted individual, and recognizing that any requests to withdraw cash or transfer funds via unconventional means like Bitcoin ATMs or gift cards are likely scams. The FTC emphasizes that real businesses and government agencies will never request such actions, and adhering to this advice is crucial for consumer protection.