Gairika Mitra
A troubling trend has emerged as fraudsters utilize Bitcoin ATMs to perpetrate scams, predominantly affecting the elderly.
According to data from the Federal Trade Commission (FTC) shared with NBC News, consumer losses from Bitcoin ATM scams have surged nearly tenfold since 2020, surpassing $110 million in 2023.
The data further added that a significant portion of these victims are older adults, with those over 60 being more than three times as likely to fall prey to these schemes compared to younger individuals.
These scammers would mostly initiate their schemes by contacting potential victims under the guise of customer service representatives. They would claim to have detected an identity theft attempt or account breach and send a QR code linked to a digital wallet, instructing the victim to deposit cash into a Bitcoin ATM. Bitcoin ATMs convert the cash into Bitcoin, which is then transferred to the scammer, leaving the victim clueless about the fraud.
These scammers would often pose as employees of government agencies, Microsoft, or Google. They usually begin by acquiring the victim’s phone number and sending urgent messages.
Satoshi Talks (@Satoshi_Talks), a crypto analysis platform, conveyed the FTC’s message, urging people to be cautious and properly judge the situation before engaging in any kind of transaction.
“The FTC has warned about a tenfold increase in #Bitcoin ATM scams, where fraudsters trick people into sending cryptocurrency through ATMs to addresses they control. These scams often involve fake job opportunities, government impersonations, or prize offers.
“The FTC urges consumers to be cautious and verify the legitimacy of requests before making any transactions,” the account tweeted.
A user with the X handle @Kate_beachbum blamed Athena Bitcoin, a cryptocurrency technology company, for allegedly taking $100,000 from her parents’ account.
“@AthenaBitcoin my friends, elderly parents were ripped off using your ATM for around $100,000 all the money they basically have in the world. I looked up your company and it’s well-known for scams. This elderly couple in their 80s now have no money to live on! Do something,” she said.
Bitcoin ATMs resemble traditional ATMs but facilitate cryptocurrency transactions. They have proliferated throughout the United States, but the U.K. and Singapore have chosen to ban them.
Meanwhile, Australia has become the third largest market for crypto ATMs, seeing nearly a 17% surge in the past two years. Australia currently has around 1,162 machines, up from 67 in the last year. The Australian authorities believe it to be a “money laundering vulnerability.”
Read More
- Australia Becomes Third-Largest Market for Crypto ATMs Amid Money Laundering Concerns
- Australians Lose $180 Million to Crypto Scams in a Year, Says Federal Police
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
