Bitcoin ATM Scams Skyrocket to $110 Million Here’s Who’s at Risk!

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While Bitcoin ATM fraud is becoming rampant, elderly people are the most affected. The losses related to these scams rose to over $110 million in 2023 as per the Federal Trade Commission (FTC), which is nearly ten times the amount reported in the year 2020. This is rather disturbing since it shows how seniors are exposed to Cryptocurrency fraud in the modern world.

These kiosks, which can be used to buy Bitcoin directly, are now a new gateway for fraudsters. Such automated teller machines that work on cryptocurrencies are now standard in locations such as convenience stores or gasoline stations across the United States. However, it has also made cryptocurrency services accessible to the public through these platforms, and, regrettably, it has also led to the creation of a gateway for fraudsters.

How scams target older adults

Most hackers mimic employees of a particular company, governmental body or tech gurus in companies such as Apple or Microsoft among others. This they do by calling the victims, informing them there has been an attempt to steal their identities or there is a breach in their accounts and they are required to put cash in a Bitcoin ATM. 

The deposited cash is hurriedly converted to Bitcoin and withdrawal is made directly into the scammer’s Bitcoin purse; leaving the victim helpless.

The investigating services have established that people over 60 years of age are three times more likely to be conned using such scams than young people. The requirements appear very pressing and the schemes used are quite subtle that it is almost impossible for many people to avoid falling victim to the scams before it is too late.

Efforts to combat the scams

Even in the presence of such frauds, there are challenges to combating Bitcoin ATM scams. In their defence, companies managing Bitcoin ATMs, like Bitcoin Depot, claim to have put in place various measures such as scam alerts, and live-chat help. This is a problem that cannot be fought altogether, said Scott Buchanan, chief operating officer of the company.

The FTC suggests that would-be victims should take a moment and make sure to sift through any requests to transfer money via a Bitcoin. There should be emphasizes the importance of slowing down and checking out the legitimacy of such requests, as these scams are becoming increasingly prevalent.

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