Bitcoin ATM Fraud Surges in the US… 10x in 3 Years

As the number of Bitcoin automated teller machines (ATMs) in the United States increases dramatically, so does the number of frauds they cause.
Last year, reported losses from Bitcoin ATM fraud exceeded $110 million.

This is about a tenfold increase from 2020.

In particular, the damage was found to be great for those aged 60 and older.

People over 60 were three times more likely to have been scammed by a Bitcoin ATM than those under 60.

Bitcoin ATMs differ from traditional ATMs in that they target virtual currencies, but they are similar to traditional ATMs in that they allow both deposits and withdrawals.

Scammers are approaching victims by impersonating customer service representatives and claiming that their identity has been stolen or their account has been compromised. They then text them a QR code that is linked to a digital wallet.

The victim is then prompted to scan a code and deposit cash into a Bitcoin ATM, after which the cash is converted into Bitcoin and intercepted.

The scammers impersonated not only customer service providers, but also major tech companies like Microsoft and Apple, and government agencies, the FTC said.

There are about 40,000 Bitcoin ATMs installed worldwide, with 32,000, or about 80%, installed in the United States alone. In the United States, there were about 4,000 at the beginning of 2020, but the number has increased eightfold in three years.

Bitcoin ATMs are banned in some countries, including the UK and Singapore, and one was installed in Myeongdong, South Korea, in July.