ATM Scams: The Growing Threat to Older Adults

ATM Scams: A New Era of Fraud

Scams involving Bitcoin ATMs have seen a dramatic rise, with losses reported to the Federal Trade Commission (FTC) exceeding $110 million in 2023. This alarming trend has disproportionately impacted older adults, who are more likely to fall victim to these fraudulent schemes.

How the Scams Operate

Fraudsters often pose as customer service representatives to prey on vulnerable individuals. They may contact potential victims through deceptive messages, leading them to believe their accounts are compromised. Victims are then directed to use Bitcoin ATMs, where they unwittingly deposit cash that is converted into Bitcoin and sent to the scammer's wallet.

• Fraudsters often create a sense of urgency.
• Victims receive QR codes linked to digital wallets.
• Scammers frequently impersonate tech and government officials.

Impact on the Elderly

Data suggests that consumers over age 60 are three times more likely to report losing money to these scams. Marilyn LoCascio, 76, lost $31,500 to scammers posing as representatives from Apple and the U.S. Treasury. Such cases highlight the need for increased awareness and caution when using Bitcoin ATMs.

Protecting Yourself from Bitcoin ATM Scams

Bitcoin ATM operators, such as Bitcoin Depot, assert they provide warnings to users and have support teams available to help prevent scams. However, the regulatory environment varies, and complete prevention of fraud is challenging. Consumers are advised to take their time and verify any claims made by others before using these ATMs.

For more details, tune into “NBC Nightly News with Lester Holt” at 6:30 p.m. ET/5:30 p.m. CT.