Bitcoin ATM Scams Surge Tenfold Since 2020, FTC Reports

The Federal Trade Commission (FTC) has reported a 10-fold rise in scams involving Bitcoin ATMs since 2020, citing scams driven by fraudsters exploiting anonymity and the speed of cryptocurrency transactions.

Bitcoin ATM Scams

These scams often involve malicious actors convincing victims to unwittingly transfer their funds via Bitcoin ATMs under false pretenses.

According to FTC data, losses from Bitcoin ATM scams exceeded $110 million in 2023, with consumers aged 60 and older being three times more likely to fall victim.

In an interview with Cointelegraph, a Bitcoin Depot spokesperson responded to the FTC warning to discuss consumer protection and scam prevention: ‘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.’

Consumer Protection

The spokesperson offered several security tips for consumers to stay safe while using Bitcoin ATMs, including never sending BTC or other cryptocurrencies to unknown digital wallets or individuals they don’t personally know and trust.

The FTC and Bitcoin Depot encourage consumers to take extra precautions, be aware of potential scams, and always verify their transactions’ legitimacy before sending cryptocurrencies.

Regulating Bitcoin ATMs in California

On Aug. 7, a local government committee in Chico, California, discussed the regulation of Bitcoin ATMs.

Andy Pickett, chief administrative officer at the County of Butte, discussed the efforts to regulate Bitcoin ATMs in the government committee, aiming to treat them ‘more like a bank’.

Pickett explained that each jurisdiction would have to ‘pass their own ordinance’ to regulate Bitcoin ATMs and that ‘any ordinance would likely be challenged in court.’

FTC and Bitcoin Depot advise consumers to be particularly cautious when using Bitcoin ATMs and to follow all precautions to avoid scams.