Bitcoin ATM scams on the rise: Americans lose $65 million in six months

The Federal Trade Commission (FTC) has warned that scammers are increasingly using bitcoin ATMs to steal money from unsuspecting victims. In the first half of 2024, Americans lost $65 million, twice as much as for the entire year of 2021.

Unlike traditional ATMs used to withdraw cash, bitcoin ATMs (or BTMs) usually serve a different purpose – they exchange cash to buy and send cryptocurrency. Conveniently located in grocery stores, gas stations, and other places, BTMs are now being exploited by fraudsters as a means to collect money from their victims.

The latest FTC data reveal that fraud losses to bitcoin ATMs topped $65 million in just the first six months of 2024. That's a nearly tenfold increase from 2020 when victims reported $12 million in losses to BTM fraud.

The median loss was $10,000, meaning that half of the victims lost more than this amount and the other half lost less. Consumers over the age of 60 are over three times more susceptible to BTM scams than younger adults.

“Reports of losses using BTMs are overwhelmingly about government impersonation, business impersonation, and tech support scams,” the FTC explains.

Many of these scams start with a call or message about detected suspicious activity on an Amazon or bank account, or unauthorized charges. Scammers will warn that money is at risk or even claim that their targets are somehow involved in money laundering, drug smuggling, or something else.

Their suggested solution is to “protect” the funds by withdrawing from “compromised” bank, investment, or retirement accounts and depositing them to specific BTMs. However, the victims’ deposited cash goes straight into the fraudster’s wallet.

While the lies told by scammers vary, some things are in common. They all try to create urgent justification for users to take cash and put it into a BTM. Scammers provide the QR codes to scan at the machine.

“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,” the FTC says.

The commission also recommends never clicking on links or responding directly to unexpected calls, messages, or computer pop-ups and never withdrawing cash in response to unexpected calls or messages.

“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,” the FTC said. “Slow down. Scammers want to rush you, so stop and check it out. Before you do anything else, talk with someone you trust.”

The FTC asks to report bd practices at ReportFraud.ftc.gov.