Research shows nearly tenfold increase in losses to Bitcoin ATM scams since 2020

By Ovunc Kutlu

ISTANBUL (AA) - New research shows a nearly tenfold increase in losses to Bitcoin ATM scams since 2020, the US Federal Trade Commission (FTC) said Tuesday.

"Since 2020, the amount consumers reported losing has increased nearly tenfold to over $110 million in 2023," it said in a report.

The FTC said that fraud losses to Bitcoin ATMs have topped $65 million in the first six months of this year.

"During this timeframe, consumers over the age of 60 were more than three times as likely as younger adults to report losing money to Bitcoin ATM scams," it said. "Across all ages, the median loss reported in the first half of this year was a staggering $10,000."

Bitcoin ATMs, which are machines that look like a traditional ATM, are often found at convenience stores, gasoline stations and other high-traffic areas, said the FTC. Instead of distributing cash, they accept cash in exchange for cryptocurrency.

"Their use by scammers, who urge consumers to deposit cash into them to 'protect' their savings, is on the rise," it added.

Most scam losses involving Bitcoin ATMs come as a result of government impersonation, business impersonation, and tech support scams, according to the agency.

"The lies told by scammers vary, but they all create some urgent justification for consumers to take cash out of their bank accounts and put it into a Bitcoin ATM. As soon as consumers scan a QR code provided by scammers at the machine, their cash is deposited straight into the scammers’ crypto account," it noted.

The FTC advised consumers to never click on links or respond directly to unexpected calls, messages, or computer pop-ups, adding: "If you think it could be legitimate, contact the company or agency, but look up their number or website yourself. Don't use the phone number the caller or message gave you."

The agency also advised consumers to slow down in their actions, avoid rushing, and never withdraw cash in response to an unexpected call or message.

"Don’t believe anyone who says you need to use a Bitcoin ATM, buy gift cards, or move money to protect it or fix a problem. Real businesses and government agencies will never do that – and anyone who asks is a scammer," it warned.