Key Points
- Bitcoin ATM scams have surged by a massive 1000% in the last four years, according to the US Federal Trade Commission (FTC).
- The scams led to over $110 million in losses in 2023, with the majority of victims being 60 years old and above.
According to the US Federal Trade Commission (FTC), Bitcoin ATM scams have seen a tenfold increase in the past four years.
The FTC suggests that scammers are taking advantage of the anonymity and speed of cryptocurrency transactions.
Scammers Target Older Investors
In 2023, these scams resulted in losses exceeding $110 million.
Most victims were aged 60 and above, with Bitcoin investors being the primary targets of these fraudulent activities.
The scams typically involve fraudsters tricking victims into transferring funds using Bitcoin ATMs under false pretenses.
A representative from Bitcoin depot expressed concern about these scams and discussed strategies for consumer protection and prevention.
The FTC has cautioned that no legitimate company or regulator will ever demand payment in Bitcoin or other digital assets via a Bitcoin ATM.
The commission also stated that neither Bitcoin nor ATMs can safeguard your money and there is no such thing as a government Bitcoin account or digital wallet.
Bitcoin Depot’s Protective Measures
The Bitcoin Depot representative stated that the company has put in place various protective measures to fight scams.
These measures include posting scam warnings on their kiosks and incorporating on-screen prompts to alert customers about potential scam risks.
The representative also advised consumers to never send Bitcoin or other digital assets to unknown digital wallets or individuals they do not personally know and trust.
The company regularly collaborates with regulators and law enforcement to support their customers and prevent misuse of their services.
In August, a local government committee in Chico, California, reviewed the regulation of Bitcoin ATMs.
Andy Pickett, the chief administrative officer for Butte County, discussed efforts to regulate these ATMs by treating them more like a bank.
He acknowledged that each jurisdiction would need to pass its own ordinance to enforce such regulations, and that any such ordinance would likely face legal challenges.
