Shocking Rise in Bitcoin ATM Scams: Americans Losing $10 Million Monthly!
Yahoo Finance3 months ago
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Shocking Rise in Bitcoin ATM Scams: Americans Losing $10 Million Monthly!

Education
bitcoin
scams
fraud
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Summary:

  • $10 million lost monthly due to Bitcoin ATM scams in the US.

  • Scams have increased tenfold from 2020 to 2023.

  • Victims report a median loss of $10,000.

  • 71% of losses involve individuals over 60 years old.

  • Scammers often impersonate government officials and tech support.

Bitcoin ATM Scams: A Growing Threat

The Federal Trade Commission (FTC) has recently published a report highlighting the alarming increase in Bitcoin ATM (BTM) scams. The data reveals that these scams have surged tenfold from 2020 to 2023. In just the first six months of 2024, Americans have reported losses totaling $65 million due to fraud associated with BTMs.

The Severity of the Problem

The situation is even more dire, as many scams go unreported. Victims have reported a median loss of $10,000, showcasing the seriousness of these fraudulent activities.

How Scammers Operate

Most scams involve impersonation of government officials, business entities, or tech support representatives. Notably, almost 50% of reported scams began with a phone call. Scammers often use tactics like fake security warnings, claiming to be from well-known companies like Microsoft or Apple.

Examples of their deceitful methods include:

  • Pretending to be government agents or utility employees, insisting victims pay bills via BTMs.
  • Scaring victims into believing their bank accounts are under attack, prompting them to transfer funds to a "secure account".

Targeting Specific BTMs

The FTC's report indicates that scammers have preferences for certain BTM operators, which have shifted over time due to enhanced fraud prevention measures implemented by crypto companies. Scammers direct victims to specific BTMs, sending QR codes that directly funnel money into their wallets.

Who is Affected?

The demographic most affected by these scams tends to be older individuals. The FTC reports that $46 million, or 71% of total BTM losses in the first half of 2024, came from individuals over 60 years old. In contrast, younger individuals (ages 18-59) primarily fall victim to fake investment schemes.

Protecting the Vulnerable

It is crucial to raise awareness, particularly among older adults, about the dangers of BTM scams. Recovering lost funds is often impossible, making prevention vital. Furthermore, it may be time for BTM operators and the businesses housing these machines to post warnings about potential scams to protect consumers.

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