Scammers have exploited the speed of crypto transactions and anonymity to create a 1000% increase in scams involving Bitcoin ATMs since 2020, according to the Federal Trade Commission (FTC).
These schemes frequently involve malicious actors deceiving victims into unknowingly transferring their funds through Bitcoin ATMs under pretenses.
The Federal Trade Commission (FTC) reported that Bitcoin ATM schemes resulted in losses exceeding $110 million in 2023. Consumers aged 60 and older were three times more likely to be victims.
In an interview, a spokesperson for Bitcoin Depot addressed the FTC’s warning regarding consumer protection and fraud prevention.
Bitcoin ATMs Scams
The Federal Trade Commission (FTC) warned consumers that no legitimate agency or company will ever request payment in Bitcoin (BTC) or other cryptocurrencies through a Bitcoin ATM.
“…neither Bitcoin nor the ATM will protect your money. In fact, no cryptocurrency will. No matter what the caller says, there’s no such thing as a government Bitcoin account or digital wallet. There are no Bitcoin federal safety lockers.“
The spokesperson for Bitcoin Depot disclosed that the organization “displays scam warnings on its kiosks” and “implements screen prompts that alert customers to the potential for scams.”
“This is a common practice for any legitimate kiosk operator.”
Consumer Protection
The spokesperson gave consumers various security tips to ensure their safety when using Bitcoin ATMs. One of the tips was to avoid transmitting BTC or other cryptocurrencies to “unknown digital wallets or individuals they do not personally know and trust.”
“We routinely cooperate with regulators and law enforcement to support our customers […] While Bitcoin ATMs are a valuable tool for accessing digital currencies, like any financial service, they can be misused by bad actors.”
The FTC and Bitcoin Depot emphasize the importance of consumers exercising caution, being aware of potential schemes, and verifying their transactions’ legitimacy before sending cryptocurrencies.
