Bitcoin ATM Scams Lead to $110 Million in Losses in 2023, FTC Report Reveals

The Federal Trade Commission (FTC) reported that Bitcoin ATM scams caused over $110 million in losses in 2023, almost ten times higher than in 2020. Elderly individuals, especially those over 60, were the most targeted victims.

Crypto Scam with Bitcoin ATM: $110 Million Lost in 2023

In a staggering revelation, crypto scams involving Bitcoin ATMs have cost consumers over $110 million in 2023 alone, according to a recent report from the Federal Trade Commission (FTC). This figure marks a significant rise compared to losses reported in 2020, which were almost ten times lower. The growing popularity of Bitcoin ATMs has unfortunately provided scammers with more opportunities to exploit users, with the elderly being the most affected group.

Skyrocketing Losses from Bitcoin ATM Scams

The FTC’s data shows that Bitcoin ATM scams have become a dominant concern in the crypto world. In 2020, total reported losses from these scams were a fraction of the 2023 figure. This year, losses skyrocketed to $110 million, reflecting a sharp rise in fraudulent activities around cryptocurrency ATMs.

What’s more, in the first six months of 2024 alone, reported losses have already exceeded $65 million, indicating that the trend is far from slowing down. Scammers continue to innovate new tactics to deceive unsuspecting users, leading to even greater financial losses.

Elderly Individuals Are the Most Targeted

According to the FTC’s analysis, elderly people, particularly those over 60 years old, are the primary victims of Bitcoin ATM scams. Scammers tend to prey on older individuals by using scare tactics, such as claiming to represent government agencies, businesses, or technical support teams, persuading them to withdraw large sums of money from their bank accounts and deposit it into a Bitcoin ATM.

Once the victim scans a QR code provided by the scammers, the money is quickly transferred to the scammer’s crypto wallet, leaving the victim with no recourse. For all age groups, the median reported loss in 2024 was $10,000, a substantial sum for most households.

How Bitcoin ATM Scams Work

One of the most common techniques scammers use involves convincing individuals to deposit cash into Bitcoin ATMs to “protect” their savings. Scammers often pose as government representatives or company officials, creating a sense of urgency for their targets to act. Once the victim enters the ATM and scans a QR code provided by the scammer, the funds are instantly transferred to the scammer’s crypto wallet.

New Regulations for Bitcoin ATMs

To combat the rise of these fraudulent activities, local governments are stepping up regulations on Bitcoin ATMs. In Chico County, California, new state regulations have been introduced to monitor and manage the operations of Bitcoin ATMs. These regulations aim to reduce fraud, increase transparency, and protect users.

Among the new rules is a daily deposit limit of $1,000. Additionally, operators of Bitcoin ATMs are now required to issue receipts and disclose the identities of those conducting transactions. This move is designed to curb both scam activities and exorbitant transaction fees, which have reportedly reached 33%, with some ATMs allowing deposits up to $50,000.

These regulations are expected to provide better protection for consumers, especially older individuals who are often targeted by scammers, and bring more transparency to the growing use of Bitcoin ATMs.

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