Financial scams can take numerous forms, such as a well-known technological business claiming that your online account has been compromised, or someone impersonating a bank executive claiming that your credit card has been charged unauthorized fees.
More advanced frauds may employ artificial intelligence and counterfeit law enforcement officers claiming to “help” you with your situation — all you have to do is give over bundles of cash to an anonymous car outside your home.
Is there one apparent red flag? According to the Federal Trade Commission, such fraud increasingly involves bitcoin ATMs. The kiosks, known as bitcoin teller machines (BTM), are commonly found at convenience stores, restaurants, and gas stations and resemble traditional ATMs.
Instead of allowing cash withdrawals, users can often buy or sell cryptocurrencies with cash, debit, or credit cards. Another distinction is that BTMs are linked to digital wallets rather than bank accounts.
Consumers reported $114 million in losses from BTM scams in 2023, representing a nearly 900% rise over the previous three years, according to a report released Tuesday by the FTC. Losses until June of this year totaled over $66 million, indicating that the trend is only increasing, while the median amount victims lost was a stunning $10,000.
According to the Better Business Bureau, cryptocurrency fraud is becoming one of the most popular financial scams. Criminals frequently target elderly consumers, with the FTC stating that persons aged 60 and above are more than three times more likely than younger people to be duped by BTM frauds.
In a typical BTM theft, the fraudster may say that your computer has been hacked, or that your bank accounts have been tied to drug trafficking or money laundering. They can help—but only if you strictly adhere to their recommendations.
The ruse could also include offering to connect you with a representative from the FTC, the IRS, or another official body.
According to the FTC, the scammer will then urge victims to withdraw cash from their bank and send them to a nearby BTM, where they will text you a QR code to scan at the machine. That transfers the funds directly to the criminals’ cryptocurrency wallet.
According to the FTC, the main line is: “Don’t believe anyone who says you need to utilize a Bitcoin ATM to protect your money or solve an issue. Real businesses and government bodies will never do that, and anyone who does is a scammer.