Surge in Bitcoin ATM Scams: A 1,000% Increase Since 2020

The rapid rise of scams involving Bitcoin ATMs has raised alarms, particularly affecting older individuals. Authorities, alongside industry leaders, are emphasizing the need for awareness and preventive tactics.

Reports indicate that scams associated with Bitcoin ATMs in the United States have surged tenfold since 2020, with fraudsters taking advantage of the anonymity and swift nature of cryptocurrency transactions.

Victims are often misled into transferring their money through Bitcoin ATMs under false claims.

According to recent data, losses attributed to Bitcoin ATM scams surpassed $110 million in 2023. Notably, individuals aged 60 and above are three times more likely to be targeted.

A spokesperson for a Bitcoin ATM operator addressed the importance of consumer safety and discussed strategies for avoiding scams.

Understanding Bitcoin ATM Scams

The Federal Trade Commission (FTC) cautioned the public that no legitimate organization will request payment in cryptocurrencies through a Bitcoin ATM.

“Neither Bitcoin nor the ATM will ensure the safety of your money. There is no such thing as a government Bitcoin account or safety features associated with them.”

The spokesperson from the Bitcoin operator noted that they prominently display warnings about scams at their kiosks and have measures in place to alert customers about potential risks.

“This is a standard practice for credible operators.”

Tips for Consumer Safety

The spokesperson shared several guidelines for using Bitcoin ATMs safely:

• Avoid sending BTC or other cryptocurrencies to unknown wallets or individuals you do not personally know.
• Stay informed about the potential for scams when using such services.
• Always verify the legitimacy of transactions before proceeding.

“While Bitcoin ATMs provide access to digital currencies, they also can be exploited by malicious actors.”

Both the FTC and Bitcoin operators advocate for vigilance and thorough checks before sending any cryptocurrency to ensure transactions are legitimate.

Efforts Toward Regulating Bitcoin ATMs in California

On August 7, 2023, a committee in Chico, California, convened to discuss the regulation of Bitcoin ATMs. The discourse included efforts to manage these facilities more like financial institutions.

Andy Pickett, chief administrative officer at the County of Butte, explained that individual jurisdictions must establish their own regulations for Bitcoin ATMs and that any such ordinance could face legal challenges.