Bitcoin ATM Scams Surge Tenfold Since 2020

The Federal Trade Commission (FTC) has revealed a dramatic increase in scams involving Bitcoin ATMs, with reported cases rising tenfold since 2020.

Fraudsters are taking advantage of the anonymity and rapid transactions offered by cryptocurrencies to trick victims into transferring funds through these ATMs under false pretenses.

FTC statistics indicate that Bitcoin ATM scams led to over $110 million in losses in 2023, with individuals aged 60 and older being three times more susceptible to these scams.

In response to the FTC’s warning, a representative from Bitcoin Depot spoke with Cointelegraph about the company’s efforts to protect consumers and prevent fraud. The FTC has advised that no legitimate organization would request payments in Bitcoin or other cryptocurrencies through a Bitcoin ATM.

The Bitcoin Depot representative emphasized that their ATMs display scam warnings and provide on-screen alerts to educate users about potential fraud. “It’s standard practice for reputable operators to include such warnings,” the spokesperson noted.

To help users avoid scams, the spokesperson recommended that consumers refrain from sending Bitcoin or other cryptocurrencies to unknown digital wallets or individuals they do not personally know. Bitcoin Depot works closely with regulators and law enforcement to safeguard users and address misuse of Bitcoin ATMs.

In related news, a committee in Chico, California, recently reviewed proposed regulations for Bitcoin ATMs. Andy Pickett, chief administrative officer for the County of Butte, discussed plans to regulate these machines similarly to banks. He noted that each jurisdiction would need to create its own regulations, which could face legal challenges.