On September 3, 2024, the Federal Trade Commission issued new data that shows a massive increase in the amount of money consumers report losing to scammers involving Bitcoin ATM machines. According to the FTC, the amount consumers reported losing has increased nearly tenfold to over $110 million in 2023 compared to 2020.
Bitcoin ATMs are machines that look like a traditional ATM and are often found at convenience stores, gas stations and other high-traffic areas. Instead of distributing cash, they accept cash in exchange for cryptocurrency. Scammers are increasingly using these machines to trick consumers into depositing cash to supposedly "protect" their savings.
According to the FTC’s report, consumers over the age of 60 were more than three times as likely as younger adults to report losing money to Bitcoin ATM scams. In addition, the majority of scam losses involving Bitcoin ATMs come as a result of government impersonation, business impersonation, and tech support scams. Scammers use urgent lies to trick consumers into depositing cash into Bitcoin ATMs. Once consumers scan a provided QR code, their money goes directly into the scammers' crypto accounts.
Through the data spotlight, the FTC provided tips for consumers to avoid being drawn into scams like Bitcoin ATM Scams.
Read the FTC’s press release here.
The Data Spotlight can be found here.