Bitcoin ATM Scams Have Americans Losing Millions, FTC Reports

The U.S. Federal Trade Commission (FTC) has reported a massive increase in losses to Bitcoin ATM scams, nearly ten times the amount from 2020 and reaching over $110 million in 2023.

The Federal Trade Commission (FTC) has reported a massive increase in losses to Bitcoin ATM scams, with nearly ten times the amount being lost compared to 2020, reaching over $110 million in 2023. These scams typically involve fraudsters tricking victims into depositing cash at Bitcoin ATMs, which are usually found in busy areas like convenience stores and gas stations. Instead of dispensing cash like traditional ATMs, these machines allow users to buy and sell cryptocurrency.

For years, scammers have used these ATMs to impersonate law enforcement or government officials and trick their victims into making deposits. In these scams, the criminals would inform the targets that their accounts had been breached and convince them to deposit money to "protect" their savings.

According to the FTC's report, Americans have already lost $65 million in the first half of 2024 in scams involving Bitcoin ATMs. The FTC also noted that consumers aged 60 and older were more than three times as likely to report losses during this period compared to younger adults. The median loss reported across all age groups in the year's first half was $10,000.

Most Bitcoin ATM scam losses stem from government impersonation, business impersonation, or tech support scams. In these schemes, the criminals create urgent scenarios to persuade their victims to withdraw cash from their bank accounts and deposit it into a Bitcoin ATM. However, once consumers scan the QR codes provided by the scammers, their cash is transferred directly into the scammers' cryptocurrency wallets.

"Scams that use BTMs work in lots of different ways. Many start with a call or message about supposed suspicious activity or unauthorized charges on an account," the FTC warned. "Others get your attention with a fake security warning on your computer, often impersonating a company like Microsoft or Apple. These things are hard to ignore, and that's the point. From there, the story quickly escalates. They might say all your money is at risk, or your information has been linked to money laundering or even drug smuggling."

The FTC also provided some tips to help consumers avoid these scams, such as not clicking on links or responding directly to unexpected calls, messages, or computer pop-ups. Instead, they should verify the legitimacy of the communication by contacting the company or agency that reached out using a number or website they found themselves.

When it comes to making decisions about your money, don't let anyone rush you. Scammers often try to pressure their victims into making quick decisions. Take your time to check all the information they provide and consult someone you trust before taking any action.

Additionally, never withdraw cash in response to unexpected calls or messages, and never believe anyone who says you need to use a Bitcoin ATM, buy gift cards, or move money to protect your bank account or fix a problem. Government agencies and legitimate businesses will never make such requests.

The FBI also warned almost four years ago, in November 2021, that criminals are increasingly asking potential targets to send money using cryptocurrency ATMs (or Bitcoin ATMs) and Quick Response (QR) codes, making it much harder to recover their losses.

The above is the detailed content of Bitcoin ATM Scams Have Americans Losing Millions, FTC Reports. For more information, please follow other related articles on the PHP Chinese website!