Key Takeaways
- Bitcoin ATM scams have risen by 1,000% since 2020, says the FTC.
- Victims aged 60 and older are three times more likely to be targeted.
- Bitcoin ATM operators post scam warnings and collaborate with law enforcement.
Bitcoin ATM scams have skyrocketed by 1,000% since 2020, according to the United States Federal Trade Commission (FTC). These scams exploit the anonymity and speed of Bitcoin transactions, leading to $110 million in consumer losses in 2023 alone. Older adults, particularly those aged 60 and up, are three times more likely to fall victim.
Scammers convince unsuspecting individuals to transfer funds via Bitcoin ATMs under false pretenses. The FTC emphasized that no legitimate agency or company will ever request payment through Bitcoin ATMs. A Bitcoin Depot spokesperson echoed this, highlighting that their kiosks display scam warnings to protect consumers.
Bitcoin Depot also collaborates with regulators and law enforcement to combat fraud. Their advice includes never sending Bitcoin to unknown digital wallets or individuals unless you trust them personally.
The rise in scams has sparked discussions on regulation. In California, local government officials are pushing for stricter rules on Bitcoin ATMs to treat them more like traditional financial institutions. However, legal challenges are anticipated if such regulations are implemented.
