Just when you think you have a fair idea of all the modern tech-related scams in the ether, a new one appears seemingly out of nowhere. This financial scam of the moment is ATM scams, which have been on the rise since 2020.
According to the Federal Trade Commission (FTC), the amount of money consumers reported losing since 2020 increased tenfold to over $110 million. Now in 2024, people have been scammed out of $65 million in just the first six months alone — a massive increase that should have all Bitcoin ATM users concerned.
What is a Bitcoin ATM?
Before we get into the inner workings of the scam, you might be wondering what a Bitcoin ATM is, particularly if you’re not a cryptocurrency enthusiast. It’s essentially exactly what it sounds like. You can either withdraw cash, exchanging your Bitcoin into fiat currency, or deposit money, basically purchasing Bitcoin.
The scam
Outside the relatively new setting of a Bitcoin ATM, the scam itself is familiar territory. Scammers impersonating businesses, government agencies, or tech support contact victims, informing them of an urgent need to withdraw cash from their bank accounts and deposit it into a Bitcoin ATM, referring to it as a “safety locker” for their money.
The scammers direct victims to a nearby, specific Bitcoin ATM and text them a QR code to scan once they’re done. This QR code moves the cash straight to the scammer’s wallet.
In the period the data was collected, consumers over 60 were three times more likely to lose money to the scam. The median loss reported was $10,000.
How to avoid becoming a victim of a Bitcoin ATM scam
To prevent becoming a victim of any online scam, you must be mindful of any unexpected contact made with you online or your mobile device. Adhere to the following best practices:
- If you receive any unexpected calls, messages, or computer pop-ups, don’t respond to it directly. If you’re unsure, contact the actual business or agency it claims to represent.
- Remember that businesses and government agencies will never ask you to move money or use a Bitcoin ATM to solve some kind of problem. So don’t ever withdraw cash if someone calls or messages you telling you to.
- If in doubt, consult someone you know if an unexpected email, text message, or phone call sounds shady.
Cora is a digital copywriter for SSLs.com. Having eight years of experience in online content creation, she is a versatile writer with an interest in a wide variety of topics, ranging from technology to marketing.