Bitcoin ATM scams are soaring – and older adults are increasingly the victims
Bitcoin ATM scams have surged in 2023, causing over $110 million in losses, primarily affecting older adults. Experts advise caution and verification before transactions due to increasing fraud tactics.
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Scams involving Bitcoin ATMs have surged dramatically, with reported losses exceeding $110 million in 2023, a nearly tenfold increase since 2020. Older adults, particularly those over 60, are increasingly targeted, being more than three times as likely to fall victim compared to younger individuals. Scammers exploit the ATM's resemblance to traditional machines, using tactics such as impersonating customer service representatives to create a sense of urgency. Victims are often directed to scan QR codes linked to digital wallets, leading them to deposit cash that is quickly converted to Bitcoin and sent to the scammer. The rise in Bitcoin ATMs, which have grown from about 4,000 in 2020 to nearly 32,000 today in the U.S., has facilitated this trend. While operators claim to have measures in place to prevent fraud, the effectiveness of these safeguards is questioned, especially as many victims report feeling pressured to act quickly. Experts advise individuals to remain cautious and verify any urgent requests before proceeding with transactions at Bitcoin ATMs.
- Bitcoin ATM scams have increased significantly, with losses surpassing $110 million in 2023.
- Older adults are the primary victims, being over three times more likely to be scammed than younger individuals.
- Scammers use tactics like impersonation and urgency to trick victims into depositing cash into Bitcoin ATMs.
- The number of Bitcoin ATMs in the U.S. has grown dramatically, contributing to the rise in scams.
- Experts recommend caution and verification before engaging in transactions at Bitcoin ATMs.
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3 commentsWe generally don't sell speculative investments at the Kwik-e-Mart. There's no Charles Schwab kiosk next to the hot dog roller. The clerk doesn't ask if I want municipal bonds with my dubious boner pills and Lucky Strikes. The closest thing I can even imagine is forex, and even then, outside of limited trading in Pesos at the Mexican border, that's still "visit the bank and we'll call you back in a week when the envelope full of notes arrives."
Can someone describe what the legitimate market niche it serves? I'd expect that if you're in a situation where you want to use crypto as an investment, or to facilitate non-scam transactions, you have access to the Internet and non-cash payment systems, so you could use a regular exchange.
My guess is that it evolved out of the localbitcoins mindset, and more generally "people who assume typical blockchain is way more private than it is"-- because feeding cash into a kiosk without a formal KYC process is less documented than opening a Coinbase account.
Somehow people still fall for the scams. As long as the scammers are able to keep victims panicked, no amount of warnings will help.
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