Bitcoin (BTCUSD) ATM Scams Soared Above $110 Million in 2023, FTC Data Shows

Losses from bitcoin (BTCUSD) ATM scams soared above $110 million in 2023, a nearly tenfold increase in just three years, new data from the Federal

Bitcoin (BTC) enthusiasts have a new way to get scammed out of their life savings, and it's as easy as using a bitcoin ATM.

According to new data from the Federal Trade Commission (FTC), losses from bitcoin ATM scams have soared above $110 million in 2023. That's a nearly tenfold increase in just three years.

And the scams are only increasing in pace. In the first six months of 2024, the FTC said losses to bitcoin ATM scams exceeded $65 million.

Bitcoin ATM scams are also disproportionately affecting older adults. People over the age of 60 were found to be more than three times as likely to fall victim to these scams compared with younger people.

Across all age groups, the median loss during this period was a whopping $10,000.

Here's How Bitcoin ATM Scams Work

These specialized bitcoin ATMs, often located in high-traffic areas like convenience stores and gas stations, accept cash in exchange for cryptocurrency, making them an appealing tool for fraudsters.

Scammers will often impersonate government officials, businesses, or tech support agents. They'll create a fake yet seemingly urgent need for the victims to withdraw money from their bank accounts and quickly head to a bitcoin ATM to "protect" their savings.

"As soon as consumers scan a QR code provided by scammers at the machine, their cash is deposited straight into the scammers’ crypto account," the FTC said in a release Tuesday.

Bitcoin and other crypto transactions are irreversible, which means there is no recourse once the payment has been sent, outside of notifying law enforcement.

Bitcoin ATM Operators Say They Can't Stop All Fraud

Bitcoin ATM operators claim to have implemented measures to deter fraud, such as providing warnings during transactions and offering live customer support. But despite these efforts, the scams continue to happen.

"We're a regulated business,” Bitcoin Depot (BTM) Chief Operating Officer (COO) Scott Buchanan told NBC News recently of his company's efforts to protect consumers from fraud, while also acknowledging that not all fraud can be prevented.

The FTC suggests that the best way for consumers to protect themselves is to slow down, verify any suspicious communication, and avoid sending money through a bitcoin ATM at the urging of an unknown party.