WASHINGTON, D.C. — The Federal Trade Commission (FTC) has reported a dramatic surge in consumer losses linked to Bitcoin ATM scams, with the total amount lost skyrocketing to over $110 million in 2023. This represents a nearly tenfold increase since 2020, underscoring the escalating threat posed by these sophisticated fraud schemes.
Bitcoin ATMs, which resemble traditional ATMs but exchange cash for cryptocurrency, have become a favored tool for scammers. Frequently located in convenience stores and gas stations, these machines are being exploited by fraudsters who persuade unsuspecting consumers to deposit cash under the guise of protecting their savings.
The FTC’s data spotlight reveals that in the first six months of 2024 alone, Bitcoin ATM scams have accounted for over $65 million in losses. Alarmingly, individuals over the age of 60 are three times more likely to fall victim to these scams compared to their younger counterparts. The median loss reported during this period was an astonishing $10,000 across all age groups.
The most prevalent scams involving Bitcoin ATMs include impersonations of government officials, businesses, and tech support. Scammers concoct urgent scenarios to coerce consumers into withdrawing funds and depositing them into Bitcoin ATMs. Once a consumer scans a QR code provided by the scammer, the cash is irretrievably transferred to the scammer’s cryptocurrency account.
To combat this rise in fraudulent activity, the FTC offers several critical tips for consumers:
- Avoid clicking on links or responding to unexpected communications. Verify legitimacy by independently contacting the company or agency.
- Exercise caution and take time to consult with trusted individuals before acting on any solicitations.
- Refrain from withdrawing cash based on unsolicited communications. Authentic organizations will not prompt such actions.
- Be skeptical of anyone urging the use of Bitcoin ATMs, gift cards, or money transfers to resolve issues or protect assets.
The FTC’s report serves as a crucial reminder of the increasing risks associated with Bitcoin ATMs and emphasizes the need for heightened awareness and vigilance to safeguard against these pervasive scams.
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