The US Federal Trade Commission (FTC) has reported an increased rate of fraud losses via Bitcoin ATMs. The agency revealed that crypto scams through BTC ATMs saw a 1000% rise since 2020.
The report noted that the bad actors leverage crypto anonymity and transaction speeds in their exploits. Moreover, the FTC and other crypto industry leaders have highlighted the need for caution and security measures for crypto participants, especially older adults.
FTC Reports Ten-Fold Increased Scams Via Bitcoin ATMs
The US Federal Trade Commission (FTC) has released a recent report regarding the trend in crypto scams and losses. The agency identified about ten-fold increased crypto losses through Bitcoin ATM scams.
According to the report, consumer crypto losses have spiked by 1000% since 2020, with over $110 million lost via Bitcoin ATM scams in 2023.
In most cases, scammers present their victims with enticing promises and huge but fake investment opportunities. They trick their victims into transferring funds via Bitcoin ATMs by pretending to be someone they are not. The bad actors also leverage the anonymity and speedy trend of crypto transactions to exploit their targets.
To perpetuate their acts, the scammers contact their targets and pose as customer service agents, staff of tech companies, or government officials. They contact their targets through texts, phone calls, or emails, with tales of account compromise.
With these tactics, the fraudsters convince their targets that they are in danger and should deposit funds via a Bitcoin ATM to secure their funds.
Sometimes, the fraudsters send QR codes to victims to scan, which transfers the funds to their scammers’ crypto wallets. In addition, the FTC noted that fraud losses via Bitcoin ATMs rose by $65 million within the first half of 2024.
Moreover, older adults aged 60 and above are more susceptible to falling victim to the scammers’ gimmicks. According to the FTC report, fraud victims aged 60 and above were three times more likely to report losses than younger adults. The agency indicated a median reported loss of just $10,000 across all ages in H1 2024.
FTC And Others Highlights Need For Security Measures For Crypto Participants
The FTC has stressed the need for crypto participants to be cautious about their investments and transactions. The agency reiterated that no legal crypto firm will request payments in BTC or other tokens via Bitcoin ATMs.
Also, it informed the consumers that no ATM can protect their funds, but they should be mindful of scammers.
Did someone send you to a Bitcoin ATM? It’s a scam: https://t.co/P6AjvmDuPZ
— FTC (@FTC) August 26, 2024
Again, the FTC outlined some security measures for crypto customers to ensure the safety of their funds.
“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 wrote.
Amid growing concerns about crypto ATM scams, California is pushing to regulate Bitcoin ATMs. Last month, a local government committee in Chico, California, deliberated on BTC ATM regulations.
One of the committee members, Andy Pickett, chief administrator at the County of Butte, talked about regulating the machines like a bank.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
Our Editorial Process
The Tech Report editorial policy is centered on providing helpful, accurate content that offers real value to our readers. We only work with experienced writers who have specific knowledge in the topics they cover, including latest developments in technology, online privacy, cryptocurrencies, software, and more. Our editorial policy ensures that each topic is researched and curated by our in-house editors. We maintain rigorous journalistic standards, and every article is 100% written by real authors.
