Bitcoin ATM Scams Increase, Victimizing Older Adults

Rising Bitcoin ATM Scams

ATM scams are rising at an unprecedented rate, with Bitcoin scams now posing a significant threat to older adults. According to data from the Federal Trade Commission, losses tied to Bitcoin ATMs have surged nearly tenfold since 2020, reaching over $110 million in 2023. Older consumers, particularly those above 60, are disproportionately affected as they are more than three times as likely to be scammed.

How Scammers Operate

Scammers employ various schemes to trick victims into using Bitcoin ATMs for fraudulent transactions. Often, they pose as representatives from legitimate companies, claiming urgent issues such as identity theft. Victims receive QR codes that appear to protect their assets, but, in reality, funds are transferred to the scammer immediately.

• Over 32,000 Bitcoin ATMs exist in the U.S.
• Fraudsters exploit the urgency of the messages they send.
• Many scams start with a phone number acquired from the dark web.

Real Stories of Victims

Many victims, like 76-year-old Marilyn LoCascio, experience severe financial loss due to these scams. Misled by convincing tactics, she lost $31,500 to fraudsters posing as tech support and officials. Such stories highlight the pressing need for public awareness and vigilance when dealing with cryptocurrency transactions.

Protecting Against Scams

Bitcoin ATM operators assert they offer scam warnings and customer support to combat fraud. They emphasize the importance of taking a moment to verify any alerts before engaging in transactions. Emma Fletcher from the FTC advises caution: being aware and skeptical can shield users from potential losses.