Bitcoin ATM scams have seen a tenfold increase in losses since 2020, according to the US Federal Trade Commission (FTC). Reports show that consumers have lost over $110 million to these scams in 2023, with losses topping $65 million in the first half of the year alone.
The FTC highlighted that consumers over 60 are three times more likely to report losing money to Bitcoin ATM scams. The median loss reported in the first half of 2023 was $10,000.
Scammers typically use Bitcoin ATMs to dupe consumers into depositing cash, under the pretense of protecting their savings. Most scam losses involve government impersonation, business impersonation, and tech support scams.
The FTC warned consumers to be cautious and to never rush into withdrawing cash in response to unexpected calls or messages. They advised against using Bitcoin ATMs, buying gift cards, or moving money to protect or fix a problem, as legitimate businesses and government agencies would never ask for such actions. Consumers were urged to verify information independently before taking any action.