Bitcoin Forum

The FTC's report shows a massive increase in Bitcoin ATM scams, with $110 million scammed last year. This year alone, the figure has already reached $65 million just in the first half. If we compare this to 2020, there's been a tenfold increase in scams...isn't that alarming?

The main types of scams they use include "government impersonation," "business impersonation," and "tech support fraud." Scammers create urgent situations to convince victims to withdraw cash from their bank accounts and deposit it into a Bitcoin ATM using a QR code that links to the scammers' wallets.

And as usual, older adults are the most vulnerable to these scams, especially those 60 years and above.

Here’s a short video explaining Bitcoin ATM scams:

https://www.talkimg.com/images/2024/09/26/g8tl3.png

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https://www.ftc.gov/news-events/news/press-releases/2024/09/new-ftc-data-shows-massive-increase-losses-bitcoin-atm-scams
https://consumer.ftc.gov/

This is an important point as scammers often create fake urgent situations to force their potential victims to take action quickly on their request while don't have enough time to do searching and have time to considerate the situation more deeply and carefully.

If you notice this point, you will very less likely become a victim of scammers. If any stranger contacts you, it's an alarm. If he asks you for things related to money, it's a second alarm. If he tries to put you into urgent situation, it's a third alarm. So you can stop right here, and quit the conversation, and you will never be scammed.

Due to the older population being involved in these Scams for the most part, unfortunately there is little that could be done.  Even if you put up a big sign next to the ATM warning them of these Scams, how many would read it?

Though I would argue there better is a sign than not be.  ATMs could in fact have even a warning message before usage so you first have to agree that you acknowledge the existence of such Scams.  Other than that, I doubt there is much that can be done.  These Scams are typically manipulating the elderly into believing that spending that amount of Money is an emergency, an immediate action they have to take.  Now combine that manipulation with the aged brain of a grandma, poor eye vision and the lack of awareness of the surroundings and you got yourself a fatal combination.

I have seen a few videos of those people who try to bust Scammers.  The Scammers are often extremely disrespectful, I often can not fathom how many of them still catch victims with such attitude.  You would think they tried just a little bit to pretend they are nice, but most of them do not even care.

Having warning signs are good but not enough and it's individual responsibility to read, understand warning signs and take care of their own funds. The report likely was written with intention to maximize severity of this scam and how much money stolen through Bitcoin ATM scams. Because it does not give us comparisons through figures of scammed money in different years. It simply has figures of total stolen money since 2020, and says it's tenfold increase.

This information is very vague and it is really hard to count for scam severity growth with years. We know that Bitcoin ATMs have very good growth together with Bitcoin adoption growth. From about 6,500 ATMs in 2020 to nearly 40,000 ATM in 2022 and 39,000 in 2024, it's big difference. Total ATM roughly increases 6 fold and total scammed customers increases 10 fold in the same period, it makes sense but it's not too serious and scam increases less than 2 fold, rather than 10 fold if we read given number in the report.

https://coinatmradar.com/charts/manufacturer-growth/
https://coinatmradar.com/charts/growth/

What do you expect from these figures? I don't think I ever expected the figures to reduce, the figures directly corresponds with the increasing crime rate. By next year, the figures may be higher if the economic situation in some countries do not change and improve for the better because as people become more desperate, they are more willing to find more ways to get money even if it is stealing. Bitcoin ATM's may just be the easier target currently for these criminals.

These crimes shouldn't be linked to a country's economic situation. Many countries struggle; does that mean this problems gets worsen in the future? No, the key is educating people about these scams. Is it easy? Not at all, but continuous effort will help reduce them. If we assume that scams will keep rising, then it just shows we don't trust the government to tighten the law and educate people effectively. For the Bitcoin community to gain mass adoption, these incidents- or Bitcoin scams in general- need to be minimized. Why just minimize and not completely eliminate them? Because it's impossible to get rid of them entirely.

Whta's really bad in all this is this line


You have people getting cammed in a way that requires them to go get money out of their bank account and send crypto, none of those who are getting scammed this way will ever trust crypto gaian, their perception will be that the scammers couldn't get their money while in the bank but now are untraceable because of crypto transfers, so obviously they will thing bank are safer than bitcoin.


It's not too serious that the scams icnrarse twice the pace of ATM installations?
It means you have doubled the victims of an individual ATM in less than 3 years, and raised the median loss to $10000.
And most important than these numbers, the FTC only has knowledge of the reported scams, how many have been scammed and have not called the police is a guessing game.

I am sure these scams and frauds will continue to grow in numbers. The fact it's already in millions and that also $65 Million is way too much. I would never use a Bitcoin ATM until and unless there is any emergency. And the Crypto Debit Cards is also helpful if you want to spend your bits.

It's just so sad those age brackets have always been the most victim to online scams, both from ranging from ponzi schemes, cyber hacking and now Bitcoin A.T.M fraud currently trending in the crypto community. And as such, I think it's high time, a public enlightenment is made for these age brackets who mostly falls victim to these types of scams. Because most times it is such acts like this that makes government sees crypto/Bitcoin as bad, since the real identity of these scammers can't be traced.

I wonder what this scammers are telling their victims that will make them withdraw their money from their bank accounts and send it to the scammers through BTC atm machines, it is crazy. I think they must have promised these victims gains in fake investment or something like that, so maybe they are taking advantage of their greed to extort money from them. BTC or crypto is not the problem, people who are scammed this way can also be scammed with fiat, just that it is easy to trace fiat electronic transfers.

The idea is that there are big opportunities online because there is evidence that people around us or we see people online are successful. That is one of the main cause why people fall for scams that cost them a fortune. I can imagine how much that was been scammed that would give such a sum of amount ($65 million) this year when it's not yet over. Still, more and more people are being victims of scams because of a lack of knowledge about the process of it.

In a conference I attended. There was a discussion about cybercrime with tech-savvy individuals that engage in projects that are Ponzi schemes and scams. And I made a suggestion there, that a school for those who are victims of cybercrimes or are discussing with someone who they feel might be a scammer should be built for such persons. That will help increase global awareness.

It is serious and I did not say it's not serious.

I search for more details and compare what I got with what written in the FTC report, to show that FTC wanted to exaggerate the severity by steps like try to hide details and only compare things in inappropriate ways to make things worse and more severe that what it is.

In their report, if we simply read it, we see the 10-fold increase of scam, but if we get more details, as I searched, got it and shared it here, it's about 2-fold. Doubling scam is serious thing because more people losing money to scam, it's never good.

I agree, report is on reported cases, but there are more non-reported cases.

Here are the methods on how their scams are done.


you can read the full details of explanation on the link below.
https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2024/04/impersonation-scams-not-what-they-used-be

I'm generally hesitant when using ATMs. To me, they are the last resort when I truly need cash, so with Bitcoin, I just always go for online alternatives. I've heard of people complaining about high fees, but I didn't know about ATM scams. Love the short, informative, and fun format of the video the op shared.
I know about QR-code scams, it's one of the things I never use for any payments because I don't like that it's impossible to tell them apart. But it's useful to know that ATM scams also involve QR codes. The increase in scams is indeed alarming, and it's very unfortunate that the victims are mainly older people, who aren't good with digital literacy.

Bitcoin ATM numbers are increasing with time but trading fee through Bitcoin ATMs is very expensive. Depends on Bitcoin ATM manufacturers and operators, fees can be from expensive to super expensive.

Bitcoin ATMs: definition, fees and locations (https://www.investopedia.com/terms/b/bitcoin-atm.asp)
Trading fee like 4.99% to 21.9% is very terrible and it makes Bitcoin ATM is not first consideration.

Bitcoin ATM Deposit Exchange Rate shocks (https://bitcointalk.org/index.php?topic=5441922.0)

High Fees are typically when Selling Bitcoin for Cash.  Other wise, Bitcoin purchases often have zero or negligible Fees.  Even with high Fees however, if the ATM has no Know Your Customer requirements then it is an amazing option for us who want to have Privacy.  I used ATMs a lot for Bitcoin Transactions and it was my preferred choice.  That was before Know Your Customer became the norm in my country too.  And I do not regret it, even if I paid a bit of Money for this Service.  Privacy has a cost almost all the time and I know that.

It doesn't help that Bitcoin ATMs are privatized, so that any company can charge whatever fee it wants because it's the only one in the area. There is no competition in this space at all, which would've helped to force those ATM operators to lower fees out of competitiveness.

That being said, 5% - 20% fee is outrageous and I'm surprised nobody's making more of a fuss about it.

The news of Bitcoin ATM scams reaching $65 million in the first half of 2024 is alarming. This significant increase highlights the ongoing challenges in protecting consumers from cryptocurrency-related fraud. :-\

How to Protect Yourself:
Be Skeptical of Urgent Requests: If someone demands immediate payment, especially through a Bitcoin ATM, be cautious. Legitimate organizations typically don't require such urgent actions.
Verify Information: Always verify the identity of the person or organization contacting you. Don't hesitate to reach out to them directly through official channels.
Avoid Unfamiliar ATMs: Stick to reputable Bitcoin ATM operators and locations. Avoid using machines in isolated or unfamiliar areas.
Educate Yourself: Stay informed about the latest scams and trends in the cryptocurrency world.
 If you believe you've been a victim of a Bitcoin ATM scam, report it to the authorities and your financial institution.

It is mostly because of people who are supposed to know better and they don't, at this point scamming people from developed countries has become a very profitable industry in the underground world of internet, those figures alone are enough to prove it.
Interestingly (and sadly) it has gotten to the point many Bitcoin ATMs are nowadays required to hold some "scam alert" signs besides the ATM itself, so there is a chance to save some people from falling from the fake stories of scammers to urge their victims to transfer Bitcoin to their wallets.

Also, I have seen some cases which are quite mind-numbing to me, how people from both Europe and the United States are so easily convinced someone from the government is contacting them and they are required to pay/transfer thousands or hundreds of thousands in assets for them not to get in trouble. Common sense, people... common sense...

I heard of a scam like this just recently.  Working as a financial advisor by trade I hear a lot of really sad stories of fraud that people bring to me ( the ones they aren't too embarrassed to admit, that is).  One was where my clients mother was talked in to run to an ATM and then a bitcoin ATM that had here empty out here entire savings in her bank account and then have her deposit it in to the bitcoin ATM.

Sometimes I have to wonder if they bitcoin ATM operators are part of it.  Sort of seems like it.

Generally, ignorant bitcoin users undergo several scam episodes that challenges them to learn further or quit. Unfortunately, those who learn more are the youths, not the old victims. No much time is left on them to learn bitcoin. A proper solution for the old users should be awareness. Although, it'll appear less effective at the start, but if scam warnings are stamped on bitcoin ATMs, they'll have a glimpse of the risks. Example; Irreversible, old people should know that the money they are about sending may not be returned, if it's lost.

People who are over 60 years old, their mindset has begun to decrease in considering a problem they are facing, especially in urgent situations so they easily panic and at that time the perpetrators carry out their fraudulent actions to influence their victims to give their money in the form of Bitcoin to the perpetrator's Bitcoin wallet. That is why it is important for us to inform or warn our families to be careful of fraud that often occurs in times of urgency.

The term "Bitcoin ATM scam" doesn't seem correct, if you ask me.
Those are regular Bitcoin scams, which manipulate the victims into using a Bitcoin ATM to send BTC to the scammer.
You are using the term "Bitcoin ATM scam" in a way that makes it seem that the Bitcoin ATM is the tool, that scams people.
The number of Bitcoin ATMs have increased a lot in the recent years, so it's kinda normal to expect that there will be an increased amount of Bitcoin scammers using an ATM to get the victim's crypto. This is a never ending battle, but I do hope that most of the scammers will get caught and sent to jail.

That is a sad one, did this person tell you exactly what the scammers told her that made her fall for the trick, and was willing to withdraw her entire life savings and send to them. Was it a promise to double the money or what, i wonder how people can be so eager to earn more, that they forget to protect that which they have already acquired.
Why exactly do you say so, i don't see a connection to them in scams like these.