In the world of crypto scams, even the Bitcoin ATM sector seems to be recording staggering numbers. In 2023 alone, losses amount to 110 million dollars, a sum that is almost ten times more than what was reported lost in 2020.
Crypto scam with Bitcoin ATM: money losses are skyrocketing
The Federal Trade Commission (FTC) has shown new data revealing that the amount of money lost to crypto scams involving Bitcoin ATMs has skyrocketed.
Reports from consumers show nearly tenfold increase since 2020 in amount lost to scammers using Bitcoin ATMs
— FTC (@FTC) September 3, 2024
“New data from the FTC shows a massive increase in losses due to Bitcoin ATM scams. Consumer reports show an almost tenfold increase since 2020 in amounts lost to scammers using Bitcoin ATMs”
In practice, the FTC revealed that consumers reported losing well over 110 million dollars in 2023, from Bitcoin ATM scams. This figure is almost ten times larger than what was reported three years earlier, in 2020.
Other data from the FTC then shows that only in the first six months of 2024, losses from crypto ATM scam have already exceeded 65 million dollars.
Crypto scam with Bitcoin ATM: the most affected victims are over 60 years old
Continuing with the FTC report, it also emerged that in the first six months of 2024, the victims most affected by crypto scams with Bitcoin ATMs are over 60 years old.
In practice, the scammers are more likely to succeed in stealing from the elderly with this technique, rather than adults and young people.
The calculation revealed that in the first six months of 2024, for all ages, the median loss reported was a substantial 10,000 dollars.
Generally, the most commonly used crypto scam technique (and on the rise) with Bitcoin ATMs involves scammers inviting consumers to deposit cash to “protect” their savings.
The lies told by scammers can involve the government, companies, and technical support, inducing the consumer to want to withdraw their money from bank accounts to deposit it in a Bitcoin ATM.
As soon as consumers scan a QR code provided by the truffatori at the machine, their money is deposited directly into the truffatori’s crypto account.
The regulations on crypto ATMs
Recently, the county of Chico in California announced that it will adopt new state regulations to monitor and manage Bitcoin ATMs.
The objective is precisely to reduce fraud and ensure greater transparency in transactions.
In reality, in addition to preventing crypto scams, such regulation should also monitor the operation of ATMs. Last October 2023, in fact, it emerged that some crypto ATMs were applying fees up to 33%, with transaction limits that could reach $50,000.
In this sense, a bill passed has lowered the threshold for daily deposits to 1000$. Not only that, those who install a Bitcoin ATM will be required to provide receipts and disclose the names of the operators for all transactions carried out.
