Bitcoin ATM Scammers Stole $65 Million in First Half of 2024 – A Rising Threat
Understanding the Increasing Threat of Bitcoin ATM Scams
Bitcoin ATM scammers stole $65 million in the first half of 2024, indicating a significant rise in fraud targeting unsuspecting consumers. The Federal Trade Commission (FTC) has revealed that losses due to Bitcoin ATM scams skyrocketed from $12 million in 2020 to a staggering $114 million by 2023.
Mechanics of the Scam
Scammers often contact victims via phone, text, or online, impersonating bank or government officials. They convince their victims that their bank accounts are compromised, leading to instructions to withdraw cash and deposit it into a Bitcoin ATM—a method they dub as using 'safety lockers.' Upon reaching the ATM, victims are sent a QR code that transfers their funds into the scammer's crypto wallet.
- Victims reported a median loss of $10,000 this year.
- States like Vermont and Minnesota have enacted laws imposing transaction limits on crypto kiosks.
- It is crucial to verify communications from financial institutions to avoid falling victim.
Emergence of Other Crypto Scams
Alongside Bitcoin ATM scams, there are emerging threats such as deepfake scams and impersonations targeting victims’ digital wallets. Awareness and verification remain paramount in protecting assets.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.