US FTC reports notable increase in losses from Bitcoin ATM scams since 2020
(MENAFN) The US Federal Trade Commission (FTC) reported on Tuesday a dramatic increase in losses from Bitcoin ATM scams, revealing that such losses have surged nearly tenfold since 2020. According to the FTC, consumers reported losses exceeding USD110 million in 2023 alone. In the first six months of this year, Bitcoin ATM scams alone accounted for over USD65 million in losses.
The FTC highlighted that individuals over the age of 60 are particularly vulnerable, with this age group being more than three times as likely to report losses compared to younger adults. Across all age groups, the median loss reported in the first half of 2023 was a significant USD10,000. Bitcoin ATMs, which resemble traditional ATMs but accept cash in exchange for cryptocurrency rather than dispensing cash, are increasingly being exploited by scammers.
These scammers often use various deceptive tactics, such as impersonating government officials, businesses, or tech support, to create a sense of urgency and pressure victims into depositing cash into Bitcoin ATMs. Once the cash is deposited and a QR code is scanned, it is transferred directly into the scammers' cryptocurrency accounts.
The FTC advised consumers to exercise caution and avoid interacting with unexpected calls, messages, or pop-ups that request urgent action. If contacted by someone claiming to be from a legitimate company or government agency, the FTC recommends independently verifying the contact information and avoiding using any provided phone numbers or websites. Additionally, the FTC urged consumers to be wary of anyone who insists on using a Bitcoin ATM, purchasing gift cards, or transferring money to solve problems or protect savings, as these are typical signs of a scam.
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