A Smart Move or a Security Risk?

[Jawhead999]

I wonder what's the benefit for thieves stealing bitcoin ATMs to be specific ?
Won't it be the same for them to steal a bank ATM, although bank ATMs might be more secure than bitcoin ATM ?
After all, they just have to destroy the ATM and take the cash within it, isn't it ?

Yeah you're correct, in the end, the criminals can only take the cash. If the criminals are stupid enough, they destroy "buy only" Bitcoin ATM, so the criminals might not get anything even if they've destroy the machine.

The @OP think people who use Bitcoin ATM will be targeted by the criminals, but if there are many people use it, I don't think people would be targeted.

Not to mention people who use Bitcoin ATM mostly trade small amount, they just want the quick trade.

[Zoomic]

I am just imagining a situation where there are bitcoin ATMs all over the country in shops and business places where people can easily pay for goods they bought or services they enjoyed. By this time, scammers who are always ahead of their games will device a new means of scamming bitcoiners through the Automated Teller Machines.  All they need do is to get the wallet details of the victim from the compromised ATM and rip the victims of their hard earned money. I don't even see how a bitcoin ATM is adviceable for those who have hardware or cold wallets.

I don't wish to use a bitcoin ATM or carry out any random transaction that would expose my wallet to risks. The introduction of bitcoin ATMs is a smart but very risky move for both the business person and the customers.

[mindrust]

Criminals might follow people that use FIAT ATM’s too. That’s not a reason to dislike bitcoin ATM’s imo. Do we stop using physical bank branches or ATM’s because of this? Of course no. While we need to have some environmental awareness to avoid dangerous people, securing he streets is police’s responsibility.

We don’t need to live in fear just because there are criminals out there. Criminals should fear honest people. Be brave but that doesn’t mean you should act dumb. If a gun is pointed at you, give him your wallet.

[Cryptomultiplier]

Having a Bitcoin ATM in every store branch sounds like a smart business move. It shows that the company understands Bitcoin is becoming more popular and will be used for everyday purchases, just like regular money. I am talking about Costco. The news says they are putting Bitcoin ATMs in all their stores across the USA.

The biggest benefit is that it will increase their revenue.

However, there is a downside. They will need more security. We have heard stories of criminals stealing Bitcoin ATMs. There is also a risk that criminals might follow people home after using the ATM to try and steal their Bitcoin.

https://www.instagram.com/vvoyagevirtual/p/DFrK4mpRI3x/

Do you think that this is a smart move or security concern?

It's a smart move already by Costco, and what I must reiterate is that, there isn't any business that doesn't have risk. The issue is how to manage the risk associated with the introduction of Bitcoin ATM machines and credit/debit cards of clients so as to ensure theft proof or hack proof.
I think also that the Bitcoin ATMs will only be allowed in a more developed city that has heightened security presence and cameras, not just because Costco wants it, but it's because the city does need it.

[BenCodie]

You're right to post this...there are countless stories of people being mugged right after they visit a Bitcoin ATM. That, and the exorbitant fees (as others have stated) that they charge are why I'm not supportive of them. Trump is supporting the ATM operations to be scaled across America (probably because his finger is in the pie) though what I think he should be doing instead is embracing protected and escrowed peer to peer transactions instead.

However, there is a downside. They will need more security. We have heard stories of criminals stealing Bitcoin ATMs.

There is also a risk that criminals might follow people home after using the ATM to try and steal their Bitcoin.

What's the difference to fiat ATM? I've heard criminals steal fiat ATM when the employees want to refill the money.

And what's the difference between someone who withdraw money from fiat ATM or banks?

Don't be too paranoid with the security risk, if you drive using car or motorcycle, you already risk of getting robbed because criminals can block your way and force you to give them your car/motorcycle.

I guess that risk goes for every ATM, and not just for Bitcoin ATM. Costco is surely bullish about the future of Bitcoin in US, especially after the strong push by the president in all his pre-election speeches.

I hope we will see a greater amount of Bitcoin adoption in US. Costco is just doing their part to contribute to the ecosystem. Risk is always there but until and unless that risk is overpowering the benefits, there's no need to sleep over it.

Our worries might be a little misplaced. Everything that involves money is a security concern. It doesn't matter whether you're coming from a fiat ATM or a Bitcoin ATM or a physical bank or a remittance center. As a matter of fact, a robber is better off following somebody coming from a fiat ATM or a bank because it's certain that the money is there. All he/she just has to do is to point the knife and he/she gets the money right away. Whereas, the one coming from a Bitcoin ATM isn't carrying actual coins with him/her. The robber might have to torture him/her first. That's an additional hassle.

You're all missing a key detail. It's not really about the cash, it's about the Bitcoin. If someone knows you have Bitcoin, and they successfully rob you, they can do so anonymously. No one is ever going to go for your banking app, as what they will do? Incriminate themselves by transferring your balance to their name? Bitcoin, on the other hand, is transferred to a pseudonymous address. That's the difference between the risk of a cash ATM and a Bitcoin ATM.

[Darker45]

~snip~

You're all missing a key detail. It's not really about the cash, it's about the Bitcoin. If someone knows you have Bitcoin, and they successfully rob you, they can do so anonymously. No one is ever going to go for your banking app, as what they will do? Incriminate themselves by transferring your balance to their name? Bitcoin, on the other hand, is transferred to a pseudonymous address. That's the difference between the risk of a cash ATM and a Bitcoin ATM.

How can a robber do so anonymously? There's a significant difference between robbery and theft or stealing. In criminal law, robbery is a more serious crime than theft. If somebody follows a person from the Bitcoin ATM and robs him/her of Bitcoin, it has to be done physically and forcibly. It isn't like when somebody steals from a Bitcoin wallet. Theft can be done anonymously and from far away.

Cash is more anonymous than Bitcoin. If a criminal robs somebody coming from a fiat ATM, why would he/she be incriminating himself/herself by transferring the balance to his/her name? The robber takes cash, cold cash.

[BenCodie]

~snip~

You're all missing a key detail. It's not really about the cash, it's about the Bitcoin. If someone knows you have Bitcoin, and they successfully rob you, they can do so anonymously. No one is ever going to go for your banking app, as what they will do? Incriminate themselves by transferring your balance to their name? Bitcoin, on the other hand, is transferred to a pseudonymous address. That's the difference between the risk of a cash ATM and a Bitcoin ATM.

How can a robber do so anonymously? There's a significant difference between robbery and theft or stealing. In criminal law, robbery is a more serious crime than theft. If somebody follows a person from the Bitcoin ATM and robs him/her of Bitcoin, it has to be done physically and forcibly. It isn't like when somebody steals from a Bitcoin wallet. Theft can be done anonymously and from far away.

Cash is more anonymous than Bitcoin. If a criminal robs somebody coming from a fiat ATM, why would he/she be incriminating himself/herself by transferring the balance to his/her name? The robber takes cash, cold cash.

You are missing the point.

When someone goes to an ATM and gets cash, a thief is limited only to the amount of cash that comes to an ATM, which is usually too insignificant for someone to take such a large risk like committing theft. However, if someone is using a Bitcoin ATM, it's not just the cash that is on the table, it's whatever is also in their Bitcoin stash, making the risk and reward higher for someone who is willing to go that length to commit such a crime.

TLDR:
- A bank ATM transaction is limited to the cash that comes out of the ATM.
- A Bitcoin ATM transaction is open to both the cash being stolen, and the Bitcoin as well.

There are stories of kidnappings and muggings happening from Bitcoin ATM transactions where the focus is more so the Bitcoin than it is the cash. It definitely has happened before.

[OfficialGratejoy]

A lot of BTC holders has being harassed on the street and even in there homes by criminals,who forced them to transfer all there coins,on this case BTC ATM is a no go area it's very risky.
Well It may be advisable for easy purchase of goods,but the risk of loosing out is really high.

[fikrett]

A lot of BTC holders has being harassed on the street and even in there homes by criminals,who forced them to transfer all there coins,on this case BTC ATM is a no go area it's very risky.
Well It may be advisable for easy purchase of goods,but the risk of loosing out is really high.

It's not that high if you are not loud about your holdings in real life and social media too.
 

[davis196]

Having a Bitcoin ATM in every store branch sounds like a smart business move. It shows that the company understands Bitcoin is becoming more popular and will be used for everyday purchases, just like regular money. I am talking about Costco. The news says they are putting Bitcoin ATMs in all their stores across the USA

Let's be honest here. Bitcoin would never dominate over fiat, when it comes to everyday purchases. There's no point being delusional and thinking that BTC will ever dethrone the fiat currencies in the retail market. The people, who are running Costco have other goals. Maybe they want to gather some BTC before Trump announces the "strategic BTC reserve" and pump the BTC price.
Bitcoin ATMs were a dumb idea years ago and I still think that they are a dumb idea. Just use BTC on your PC and smartphone, you don't need any ATMs.

[YUriy1991]

Two sides to consider, in this case I think if you have obtained the principle permit for installing BTC ATMs and their dominant placement will be side by side with other conventional bank ATMs. To be safe from crime such as theft there is no 100 percent guarantee but if the placement is in a crowded place and also strategic maybe it can be reduced a little.

[Zigabel]

Having a Bitcoin ATM in every store branch sounds like a smart business move. It shows that the company understands Bitcoin is becoming more popular and will be used for everyday purchases, just like regular money. I am talking about Costco. The news says they are putting Bitcoin ATMs in all their stores across the USA.

The biggest benefit is that it will increase their revenue.

However, there is a downside. They will need more security. We have heard stories of criminals stealing Bitcoin ATMs. There is also a risk that criminals might follow people home after using the ATM to try and steal their Bitcoin.

https://www.instagram.com/vvoyagevirtual/p/DFrK4mpRI3x/

Do you think that this is a smart move or security concern?

This is a very brilliant idea to further increase the payment channels available in the store but then it comes with its own advantages and disadvantages which has been stated, one of the things I will suggest is that the store should adopt a security measure that can help them keep all of that in check because  they are definitely going to need it, definitely for the store and then the customers,  if it be possible they could make a way for which customers who wants to use that method of payment could without having to be scared security wise.

[fikrett]

Two sides to consider, in this case I think if you have obtained the principle permit for installing BTC ATMs and their dominant placement will be side by side with other conventional bank ATMs. To be safe from crime such as theft there is no 100 percent guarantee but if the placement is in a crowded place and also strategic maybe it can be reduced a little.

It is a double-edged sword.
Crowd can be both distracting and a way out from thieves to try something fishy due to everybody watching for your activity.
Alas, a good point about two machines being side by side of one another.

[Apocollapse]

You're all missing a key detail. It's not really about the cash, it's about the Bitcoin. If someone knows you have Bitcoin, and they successfully rob you, they can do so anonymously. No one is ever going to go for your banking app, as what they will do? Incriminate themselves by transferring your balance to their name? Bitcoin, on the other hand, is transferred to a pseudonymous address. That's the difference between the risk of a cash ATM and a Bitcoin ATM.

You act like the criminals have computer science degree and they understand every technical thing about Bitcoin. Most criminals don't even understand that, I often hear criminals use centralized exchanges to withdraw their coins.

When someone goes to an ATM and gets cash, a thief is limited only to the amount of cash that comes to an ATM, which is usually too insignificant for someone to take such a large risk like committing theft.

Not really, the criminals can threaten the victims to withdraw more and asking for other valuable assets.

Many people go out using/bring expensive things, they're more being target than random people who go to Bitcoin ATM.

[betswift]

You're all missing a key detail. It's not really about the cash, it's about the Bitcoin. If someone knows you have Bitcoin, and they successfully rob you, they can do so anonymously. No one is ever going to go for your banking app, as what they will do? Incriminate themselves by transferring your balance to their name? Bitcoin, on the other hand, is transferred to a pseudonymous address. That's the difference between the risk of a cash ATM and a Bitcoin ATM.

You act like the criminals have computer science degree and they understand every technical thing about Bitcoin. Most criminals don't even understand that, I often hear criminals use centralized exchanges to withdraw their coins.

They are using intimidation mostly, in my opinion.
Other than that, they are looking for the value at stake, not for the security of their ransack that would aquire in case of success.
But yeah, using CEXes afterward - it's a no brainer to get yourself into a discussion with authorities from said exchange.

[yudi09]

In short from me that I have never tried a Bitcoin ATM.
So I think the use of Bitcoin that has been familiar to me is very easy and safe without any complications.
If using an ATM, I feel it will invite people's suspicion when they see our activities at a place where ATMs are available.
If the benefits are more obtained by users, then it can be said that this is a smart move.

[Ndabagi01]

Having a Bitcoin ATM in every store branch sounds like a smart business move. It shows that the company understands Bitcoin is becoming more popular and will be used for everyday purchases, just like regular money. I am talking about Costco. The news says they are putting Bitcoin ATMs in all their stores across the USA.

The biggest benefit is that it will increase their revenue.

USA has already taken the bold move to make Bitcoin a user friendly asset in the country, and this will in turn make businesses want to venture into it more in order to increase their sales and the government will also benefit in revenue generation. The market is very saturated and this are other means business can employ to also be part of this bitcoin trail.

I have not read stories of Bitcoin ATMs being hijacked. How exactly will they benefit from doing that since the machine is not like a cash ATM where things are stored inside unless they will somehow tamper with the program in order to steal from the machine without making an actual payment, or is their target the cash buyers who use it to buy bitcoin?

I don’t think anything can be stolen from the Bitcoin ATM, like stealing from someone through the Bitcoin ATM machine that have interacted with the machine before. If a case of stolen Bitcoin ATM machine is the concern, then it will only be for the purpose of selling the parts of the machine and not the people’s money that have used the machine before. Bitcoin is very decentralized and a machine like that won’t be able to even store people’s date that can be tempered with by an external body after use.

[Ever-young]

Well bitcoin ATM machine is really a good idea because even without your exchange you can have access to your bitcoin via the machine and also its comfortablity in terms of buying and selling bitcoin will be much easier for users however there are a lot of risk associated with the ATM machine such as hacking of the machine which may leads to customers losing their money. So for me this calls for security concerns because they to have assured there customers of how safe or the measures they have put in place to safeguard their bitcoin while making use of the ATM machine. And also if the machine is making use of ATM card,  is also another big risk because the card can be hack or when misplace which can leads to one losing all his bitcoin in a blink of an eye.

The Bitcoin ATM will also serve as the exchange, which eliminates the need for customers to exchange their coins to fiat first before using it to purchase whatever they want, but for the Bitcoin ATM to do that, they will definitely charge fees, which is common in every business. In terms of hacking the ATM and customers funds being affected, I think the ATM owners will be the ones at greater risk in such an incident because the hacker will target the system, and customers only go there to make use of the machine. I don't think their data will in any way be saved in the machine for the hacker to steal their funds from there.

[SquirrelJulietGarden]

The Bitcoin ATM will also serve as the exchange, which eliminates the need for customers to exchange their coins to fiat first before using it to purchase whatever they want, but for the Bitcoin ATM to do that, they will definitely charge fees, which is common in every business. In terms of hacking the ATM and customers funds being affected, I think the ATM owners will be the ones at greater risk in such an incident because the hacker will target the system, and customers only go there to make use of the machine. I don't think their data will in any way be saved in the machine for the hacker to steal their funds from there.

It is less similar to a traditional exchange, but you of course can buy and sell your bitcoin through Bitcoin ATMs.

I say it is less likely an exchange if you are strictly, because you purchase bitcoin through the Bitcoin ATM operator, and sell your bitcoin to Bitcoin ATM operator, that's all. You can not buy and sell your bitcoin with any other Bitcoin user or trader, if you don't consider Bitcoin ATM operator as either an investor or a trader. They as Bitcoin ATM operators get money from Bitcoin ATM fees that are very high and expensive for Bitcoin ATM users.

[Peanutswar]

Currently, there's no Bitcoin ATM in my country but if and only if this happens for sure most of the ATMs will go under in large-scale establishments which is partnered to them it seems a few specific places because imagine the price and the uniqueness of this ATM, also I guess personally it's quite not safe to have this in public places because imagine the people around you are watching to check if you have a crypto in your phone and they can use that easily to make a withdrawal. Just wondering whats their security measure with this and if this also cater with the current market fees or they have a specific fees because also they are partnered wondering the fees comparison on it.