Staggering $65 Million Lost to Bitcoin ATM Scammers in 2024: What You Need to Know

Bitcoin ATM Scams on the Rise

According to a recent report by the Federal Trade Commission (FTC), the amount of money lost to Bitcoin ATM scams has skyrocketed. The findings reveal that consumers lost $65 million in just the first half of 2024, a staggering increase from $12 million in 2020. This alarming trend highlights the urgent need for awareness and caution.

How the Scams Work

Bitcoin ATMs are physical machines allowing users to buy or sell cryptocurrency at locations such as gas stations and grocery stores. Scammers typically contact victims via phone, text, or online pop-ups, impersonating bank or government officials. They falsely claim that the victim's bank account is compromised, urging them to take immediate action.

Image: FTC

To execute their scheme, scammers instruct victims to withdraw large sums of cash and deposit it into a Bitcoin ATM, which they misleadingly refer to as “safety lockers.” Once at the ATM, victims are sent a QR code to scan, transferring their cash directly into the scammer’s crypto wallet.

Victim Impact

This year, victims have reported a median loss of $10,000 to these scams. The FBI has issued warnings regarding this scheme since 2021, and some states like Vermont and Minnesota have begun implementing laws to limit daily transactions at crypto kiosks.

Other Crypto Scams

The rise of Bitcoin ATM scams is part of a larger trend of increasing crypto-related fraud. Other scams include deepfake crypto schemes on platforms like YouTube and impersonation scams that drain victims’ digital wallets. Notably, a former bank CEO was arrested in connection with a “pig butchering” scam that defrauded investors of millions.

It is crucial for individuals to verify the legitimacy of any communication from purported financial institutions and to refrain from withdrawing money based on unsolicited instructions.