New data from the Federal Trade Commission shows a significant increase in the amount of money consumers report losing to scammers involving Bitcoin ATM machines. Since 2020, the amount consumers reported losing has increased nearly tenfold to over $110 million in 2023.
Bitcoin ATMs are machines that resemble traditional ATMs and are often found at convenience stores, gas stations, and other high-traffic areas. 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.
In a newly released data spotlight, the FTC says that fraud losses to Bitcoin ATMs have topped $65 million in just the first six months of 2024. 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. Across all ages, the median loss reported in the first half of this year was $10,000.
The majority of scam losses involving Bitcoin ATMs result from government impersonation, business impersonation, and tech support scams. The lies told by scammers vary but 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.
The spotlight includes tips for consumers to avoid being drawn into scams like these:
- Never click on links or respond directly to unexpected calls, messages, or computer pop-ups. 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 given by the caller or message.
- Slow down. Scammers want to rush you; stop and check it out first. Before doing anything else, talk with someone you trust.
- Never withdraw cash in response to an unexpected call or message. Only scammers will tell you to do that.
- 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 – anyone who asks is a scammer.
The Federal Trade Commission works to promote competition and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money or promise you a prize. Learn more about consumer topics at consumer.ftc.gov or report fraud at ReportFraud.ftc.gov.
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