SAN ANTONIO – Cryptocurrency scams are booming, and some scammers are now tapping into Bitcoin ATMs (BTMs) to increase their returns after the machines have been popping up in convenience stores, gas stations and other high-traffic areas for years.
Losses are up nearly tenfold in 3 years
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Federal Trade Commissioner Consumer Sentinel Network data shows fraud losses at BTMs skyrocketed nearly tenfold from 2020 to 2023. The FTC said those losses topped $65 million in just the first half of 2024.
See the graph below for a broader look at how much scammers have gotten away with since 2020 using BTM scams:
The FTC said these numbers show only a fraction of the actual harm caused by scammers since many fraud cases go unreported.
“Cryptocurrency surged as a major payment method for scams in recent years, along with the massive growth in crypto payments on fake investment opportunities,” the FTC said in its Data Spotlight report.
Why there’s an increase
More accessible BTMs have also made cryptocurrency a top payment method for other scams, according to the FTC.
The commission says the BTM scams are overwhelmingly about government and business impersonation and tech support scams.
“When people used BTMs, their reported losses are exceptionally high. In the first six months of 2024, the median loss people reported was $10,000,” the FTC report read.
More than two out of every three dollars lost to fraud using the BTMs affected an older adult. People 60 and older were more than three times as likely as younger adults to report a loss using a BTM in the first half of 2024, the FTC said.
How these scams work
Many of these types of cryptocurrency scams usually start with a call or message about suspicious activity or unauthorized charges on an account.
Scammers may also try to get a victim’s attention by using a fake security warning on a computer, and they will usually impersonate someone from Microsoft or Apple.
The bad guys may say your money is at risk or may threaten that your information has been linked to money laundering or drug smuggling, according to the FTC.
Scammers will claim that depositing cash into BTMs will protect your money or fix the fake problem they told you about in the call.
The steps are usually like this:
- A scammer directs you to go to your bank to withdraw cash.
- Then, they’ll send you to a nearby BTM, usually a specific one, to deposit the cash.
- After that, they’ll text you a QR code to scan at the machine, directing the cash you deposited into the scammer’s wallet.
How to protect yourself from cryptocurrency scams like this
The FTC offers these tips to help you spot and avoid BTM scams:
- Never click on links or respond directly to unexpected calls, messages, or computer popups. Contact the company or agency to see if it could be legitimate, but look up their number or website yourself. Don’t use the one the caller or message gave you.
- Scammers want to rush you, so stop and think about what they’re asking you to do. Before you do anything else, talk with someone you trust.
- Refrain from withdrawing cash in response to an unexpected call or message. Only scammers will tell you to do that.
- Don’t believe anyone saying you must use a Bitcoin ATM, buy gift cards, or move money to protect it and fix a problem. Real businesses and government agencies will never do that.
Anyone who spots a scam like this or is a victim is asked to report it to reportfraud.ftc.gov.