WASHINGTON–New data from the Federal Trade Commission shows a massive increase in the amount of money consumers report losing to scammers involving Bitcoin ATMs.
Since 2020, the amount consumers reported losing has increased nearly tenfold to over $110 million in 2023, according to the FTC.
As the FTC noted, Bitcoin ATMs are machines that look like a traditional ATM and are often found at convenience stores, gas stations and other high-traffic areas.
“Instead of distributing cash, they accept cash in exchange for cryptocurrency,” the FTC explained. “Their use by scammers, who urge consumers to deposit cash into them to ‘protect’ their savings, is on the rise.
More Than $65M in Losses
The FTC said its newly released data spotlight shows that fraud losses to Bitcoin ATMs have topped $65 million in just the first six months of 2024.
“During this timeframe, consumers over the age of 60 were more than three times as likely as younger adults to report losing money to Bitcoin ATM scams,” the FRC said. “Across all ages, the median loss reported in the first half of this year was a staggering $10,000.”
According to the FTC, the majority of scam losses involving Bitcoin ATMs come as a result of government impersonation, business impersonation, and tech support scams.
The ‘Lies’ Being Told
“The lies told by scammers vary, but they all create some urgent justification for consumers to take cash out of their bank accounts and put it into a Bitcoin ATM,” the FTC said. “As soon as consumers scan a QR code provided by scammers at the machine, their cash is deposited straight into the scammers’ crypto account.”
Consumer Tips Shared
For credit unions wanting to protect their members, the FTC has shared tips for consumers to avoid being drawn into scams like these, including:
- Never click on links or respond directly to unexpected calls, messages, or computer pop-ups. “If you think it could be legitimate, contact the company or agency, but look up their number or website yourself. Don't use the phone number the caller or message gave you.”
- Slow down. “Scammers want to rush you, so stop and check it out. Before you do anything else, talk with someone you trust.”
- Never withdraw cash in response to an unexpected call or message. “Only scammers will tell you to do that.”
- Don’t believe anyone who says you need to use a Bitcoin ATM, buy gift cards, or move money to protect it or fix a problem. “Real businesses and government agencies will never do that – and anyone who asks is a scammer.”