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The Federal Trade Commission (FTC) says there has been a “substantial” jump in the amount of money consumers have lost to fraud using Bitcoin ATM machines.
Losses have increased tenfold since 2020, topping $110 million in 2023. In the first six months of this year, Bitcoin ATM fraud losses exceeded $65 million.
The median loss in the first half of this year was $10,000, according to FTC data. However, people over 60 were three times more likely to lose money to these scams than younger adults.
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Fraudsters continue to use Bitcoin ATMS, which are designed to look like traditional ATMs and are located in high-traffic locations such as convenience stores and gas stations, to take advantage of consumers.
CoinFlip Bitcoin ATM at a convenience store in Sydney, Australia, Thursday, August 22, 2023. (Brent Lewin/Bloomberg via Getty Images/Getty Images)
This machine accepts cash in exchange for virtual currency. However, the FTC reported that scammers are urging consumers to deposit cash to “protect” their savings.
Grant Cardone, CEO and fund manager of Cardone Capital and Cardone Training Technologies, told FOX Business that those most at risk of falling victim to this scam are “easily swayed by fear of loss or hope of gain.” he said.
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“To fall victim, the scammer must convince the target that he or she risks losing something and must act quickly. “We must act accordingly,” Cardone said, adding that “all fraud is accompanied by fear and terror.” Hope. ”
Sheldon Weisfeld, a partner at Event Horizon Capital and former CEO of CoinVault ATMs, told FOX Business that Bitcoin ATMs in particular are an attractive tool for fraudsters.
A sticker promoting Dogecoin is placed on a virtual currency automated teller machine (ATM) at a coin laundry in Hong Kong, China, on Friday, March 18, 2022. (Paul Yang/Bloomberg via Getty Images/Getty Images)
CoinVault ATM is the first licensed MSB Bitcoin ATM operator in the United States to provide terminal access for cash buy and sell transactions to digital cryptocurrency customers interested in Bitcoin.
These machines “do not require personal interaction like cash or wire transfers at a bank,” Weisfeld said. There are also 31,000 Bitcoin ATMs across the country, making access to the machines much easier, he added.
However, given that these machines are in very public places, Weisfeld said, “Ideally, people who know more about Bitcoin would be able to keep an eye on those who don't know enough.” We can make it shine.”
Overall, Weisfeld said, any scam is dangerous. That's because “it's nearly impossible to keep up with the ever-changing landscape, especially the pace of technological advancement.”
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“Even the smartest people you know and know can easily fall victim to a scam. It's very easy to collect valuable personal information on the Internet. Scammers can then talk to you or , when you pretend, you turn around to create that authenticity,'' Weisfeld said.
Still, ATMs have notices warning users about possible scams, advising them to be careful and make mistakes before making deposits to avoid being scammed.
Weisfeld said ATM operators are also required to file suspicious activity reports if users seek assistance and appear to be having trouble.
Here are some tips from the FTC on how to watch out for scams.
1. Scammers will try to rush you, so remember to slow down and check everything first. Before you do anything, talk to someone you trust.
2. Do not withdraw cash in response to unexpected calls or messages. Only scammers would send messages like this.
3. If someone tells you that you need to use a Bitcoin ATM, buy a gift card, or move money to protect your Bitcoin or solve a problem, don't believe it. No company or government official will ever ask you to do this.
