The Federal Trade Commission (FTC) has reported a sharp rise in scams involving bitcoin ATMs, with fraud losses increasing nearly tenfold from 2020 to 2023 and exceeding $65 million in the first half of 2024. These scams often involve impersonations and target vulnerable populations, such as older adults, with significant financial impact.

FTC Warns of Spike in Bitcoin ATM Fraud

The Federal Trade Commission (FTC) published a consumer protection data spotlight on Tuesday highlighting the surge in fraud associated with bitcoin ATMs (BTMs). The FTC is an independent agency of the U.S. government responsible for enforcing civil antitrust law and promoting consumer protection.

These machines, commonly found in high-traffic areas like convenience stores and gas stations, have become an increasingly popular target for scammers, the FTC detailed, adding:

FTC Consumer Sentinel Network data show that fraud losses at BTMs are skyrocketing, increasing nearly tenfold from 2020 to 2023, and topping $65 million in just the first half of 2024.

“Since the vast majority of frauds are not reported, this likely reflects only a fraction of the actual harm,” the FTC noted.

The regulator explained that scams involving cryptocurrency ATMs often include impersonations of government officials, businesses, or tech support, with scammers convincing victims to deposit cash into these machines under false pretenses.

The FTC also reported significant financial impact from these scams, particularly among older adults. The regulator stated:

When people used BTMs, their reported losses are exceptionally high. In the first six months of 2024, the median loss people reported was $10,000.

The growing availability of cryptocurrency ATMs has made them a tool for scams, with criminals often preying on victims’ fears of security breaches or financial crimes, the FTC explained. To avoid falling victim, the regulator advises consumers to be cautious of unsolicited communications and never withdraw cash or use a bitcoin ATM as directed by unknown individuals.

Source : Bitcoin News - Sep 6, 2024