CoinVoice recently learned that according to CNBC, the number of Bitcoin ATMs has grown rapidly in the United States, and some experts believe that this has also brought a growing threat of cybercrime. Bitcoin ATMs are similar to traditional cash ATMs: you need to enter a PIN code and pay a withdrawal fee, just like other ATMs.
However, unlike cash ATMs, the high value of cryptocurrency makes it a prime target for hackers. So while a cash ATM hidden among snacks and energy drinks at a gas station might not attract much attention, a Bitcoin ATM will receive more scrutiny from criminals.
“Obviously, these machines are particularly vulnerable to physical and cyber threats, making them prime targets for hackers and thieves,” said Timothy Bates, a professor of cybersecurity at the University of Michigan’s School of Innovation and Technology.
According to Frei, data shows that nearly 74% of ATMs worldwide are managed by 10 operators.
Brandon Mintz, CEO of Bitcoin Depot, the largest bitcoin ATM operator with more than 8,000 ATMs, said the company's machines are designed to prevent hackers from attacking them. But he also questioned the idea that bitcoin ATMs are a major target for hackers.
“Bitcoin ATMs are not typically a high-priority target for cybercriminals because the hardware and bitcoin wallet environments are separate,” Mintz said. He also said Bitcoin Depot does not store any bitcoins locally on its bitcoin ATMs and that the company has multiple layers of verification and approval processes to prevent unauthorized access to Bitcoin Depot wallets.
Additionally, Mintz noted that most Bitcoin ATMs (including those at Bitcoin Depot) only accept cash, so this eliminates the possibility of criminals using card readers on traditional cash ATMs. However, he also reminded users to be wary of scams, and some basic protocols that protect consumers from traditional financial scams also apply to the world of cryptocurrency. [Original link]
