- How Scams Target Older Adults
- Efforts to Combat the Scams
- FTC Recommendations
Bitcoin ATM fraud is becoming rampant, and elderly people are the most affected. Losses related to these scams rose to over $110 million in 2023, nearly ten times the amount reported in 2020, according to the Federal Trade Commission (FTC).
How Scams Target Older Adults
Most hackers mimic employees of companies, governmental bodies, or tech experts from companies like Apple or Microsoft. They call victims, informing them there has been an attempt to steal their identities or a breach in their accounts, and require them to put cash in a Bitcoin ATM. The deposited cash is hurriedly converted to Bitcoin and withdrawn directly into the scammer’s Bitcoin purse, leaving the victim helpless. Investigations show that people over 60 are three times more likely to be conned using such scams than young people.
Efforts to Combat the Scams
Despite the presence of such frauds, there are challenges to combating Bitcoin ATM scams. Companies managing Bitcoin ATMs, like Bitcoin Depot, claim to have put in place various measures such as scam alerts and live-chat help. Scott Buchanan, the company's chief operating officer, stated that the problem cannot be fought altogether.
FTC Recommendations
The FTC suggests that potential victims should take a moment to sift through any requests to transfer money via Bitcoin. It emphasizes the importance of slowing down and verifying the legitimacy of such requests as these scams are becoming increasingly prevalent.
Bitcoin ATM scams are on the rise, particularly affecting the elderly. It’s crucial to be vigilant and verify any money transfer requests via cryptocurrency to avoid falling victim to fraud.