New data from the Federal Trade Commission (FTC) reveals a staggering increase in the amount of money consumers report losing to scams involving Bitcoin ATMs. Since 2020, these losses have surged nearly tenfold, reaching over $110 million in 2023 alone.
Bitcoin ATMs, which resemble traditional cash machines, are commonly found in convenience stores, gas stations, and other high-traffic locations. However, instead of dispensing cash, these machines allow users to exchange cash for cryptocurrency. Unfortunately, scammers have increasingly exploited these machines, convincing consumers to deposit cash into them under the guise of “protecting” their savings.
In a recently released data spotlight, the FTC highlighted that fraud losses linked to Bitcoin ATMs have already exceeded $65 million in just the first six months of 2024. Particularly vulnerable to these scams are consumers over the age of 60, who are more than three times as likely as younger adults to report financial losses. Across all age groups, the median loss reported in the first half of this year was an alarming $10,000.
The most common scams involving Bitcoin ATMs include government impersonation, business impersonation, and tech support scams. Scammers use various tactics to create a sense of urgency, pushing victims to withdraw cash from their bank accounts and deposit it into a Bitcoin ATM. Once the cash is deposited, typically via a QR code provided by the scammer, it is quickly transferred to the scammer’s cryptocurrency account, leaving the victim with little recourse.
To help consumers avoid falling victim to these scams, the FTC offers several tips:
- Never click on links or respond directly to unexpected calls, messages, or computer pop-ups. If you suspect a communication might be legitimate, contact the company or agency directly using a phone number or website you’ve found independently—not the one provided by the caller or message.
- Slow down and think before acting. Scammers often try to create a sense of urgency. Take the time to verify the situation by talking to someone you trust before making any decisions.
- Never withdraw cash in response to an unexpected call or message. Only scammers will ask you to do this.
- 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. Legitimate businesses and government agencies will never make such requests. Anyone who does is a scammer.
The FTC is dedicated to promoting competition, protecting consumers, and educating the public on how to avoid scams. The agency will never demand money, make threats, ask you to transfer funds, or promise you a prize. To learn more about how to protect yourself, visit consumer.ftc.gov or report fraud at ReportFraud.ftc.gov. Follow the FTC on social media and sign up for alerts to stay informed about the latest scams and consumer protection news.
