The Federal Trade Commission (FTC) has released alarming findings regarding the rise of fraud linked to Bitcoin ATMs, which have increasingly become a favored tool for scammers. These machines, designed to help individuals convert cash into cryptocurrency, are now being exploited for fraudulent schemes.
Since 2020, the FTC reports that instances of fraud at Bitcoin ATMs have skyrocketed nearly tenfold. In the first half of 2024 alone, consumers have reportedly lost over $66 million due to these deceptive practices.
Scammers employ a variety of tactics to mislead victims, including fake phone calls, fraudulent messages, and phony security alerts. They often create a sense of urgency, convincing individuals that they are in imminent danger. Victims are then directed to deposit cash into a Bitcoin ATM, typically accompanied by a QR code that transfers their funds directly into the scammer’s wallet.