Bitcoin ATM Scams Up Tenfold Since 2020, US FTC Warns Residents

The US Federal Trade Commission has warned US Bitcoin users of scams involving ATMs that allow Bitcoin transfers. Fraudsters are increasingly using ATMs as a means to get people to transfer assets to their wallets.

The US Federal Trade Commission has warned US Bitcoin users about scams involving ATMs that allow Bitcoin transfers. Fraudsters are increasingly using ATMs as a way to get people to transfer assets to their wallets.

In a blog post on its website, the FTC warned readers, “Is there a legit reason for someone to send you to a Bitcoin ATM? The short answer is NO. Will someone from the government send you to a Bitcoin ATM? NEVER.” It said that scammers will try to convince users to act quickly to protect their bitcoin and ask them not to let anyone know, including close friends and family members. After inciting this panic, they ask users to protect their at-risk bitcoin by moving it elsewhere.

“No matter what the caller says, there’s no such thing as a government Bitcoin account or digital wallet. There are no Bitcoin federal safety lockers,” the FTC said.

The agency also offered tips to avoid falling for the scams, including never moving their funds to ‘protect’ them, calling the relevant bank, investment advisor, or broker, and reporting the scammer to the FTC.

Bitcoin ATM Scams Up Tenfold Since 2020

A recent CNBC report, citing FTC data, noted that Bitcoin ATM scams have risen 10X since 2020. In 2023 alone, scammers have reportedly drawn over $110 million using ATMs to separate users from their bitcoin. It also mentioned that people over the age of 60 are three times more vulnerable to falling for these tactics.

“In many of the incidents the FTC identified, fraudsters contact a victim — or the victim inadvertently connects with them — claiming to be a customer service representative flagging an attempted identity theft or an account breach,” the CNBC report said. The victim is then sent a QR code, which, upon scanning, initiates a transaction that would be fulfilled after depositing cash into an ATM.

“The victim is typically directed to scan the code and deposit cash into the Bitcoin ATM, which converts it into bitcoin that immediately gets transferred to the scammer — all while the victim thinks they’re protecting their assets.”

While that is one way a lot of these scams occur with users already holding bitcoin. Scammers use these ATMs as a tool to get them to transfer assets to their wallet addresses.