As a seasoned analyst with over two decades of experience in the financial industry, I have seen my fair share of scams and fraudulent activities. The recent surge in Bitcoin ATM scams is a stark reminder that cybercriminals are always on the prowl for new ways to exploit unsuspecting victims.


The US FTC has warned US residents of Bitcoin ATM scams, which have risen 10X since 2020.

The U.S. Federal Trade Commission has issued a warning to American Bitcoin users about deceptive practices linked to Automated Teller Machines (ATMs) used for Bitcoin transactions. Crooks are increasingly exploiting these machines to trick individuals into moving their digital assets to their own wallets

FTC Warns of Bitcoin ATM Scams

Source: FTC on X

The FTC has clarified that a Bitcoin ATM is not a government property. They have also clarified that a Bitcoin ATM cannot be used to protect close friends and family members. They have explained that a Bitcoin ATM is not a digital wallet

Additionally, the agency provided advice to avoid being tricked by these frauds. This advice includes:

Bitcoin ATM Scams Up Tenfold Since 2020

According to a recent report by CNBC, based on FTC data, the number of Bitcoin ATM scams has increased tenfold since 2020. In 2023 alone, scammers managed to swindle over $110 million from users by using these ATMs to steal their bitcoins. The report also highlighted that individuals aged 60 and above are three times more likely to become victims of these tactics

In numerous cases highlighted by the report on CNBC, scammers pose as customer service representatives, alerting victims of a suspected identity theft or account hack. The tricked individual is usually asked to scan a QR code, which initiates a transaction that requires depositing cash into a Bitcoin ATM. This deposit is then converted into bitcoins and swiftly transferred to the fraudster’s account, while the victim mistakenly believes they are safeguarding their assets

Here’s another way to put it: Instead of obtaining Bitcoin initially, some scammers exploit automated teller machines (ATMs) by tricking users into transferring their digital assets to the scammer’s wallet

 

Read More

2024-09-05 22:06