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Last year in 2023, the Bitcoin ATM scams resulted in more than $110 million in losses with a majority of the victims particularly from the age group of 60 and more.
As per the latest report from the US Federal Trade Commission (FTC), there’s been a 10x surge in the crypto scams involving Bitcoin ATMs in the last four years in 2020. The FTC report suggests that fraudsters have been exploiting the anonymity as well as the speed of crypto transactions.
Last year in 2023, the Bitcoin ATM scams resulted in more than $110 million in losses with a majority of the victims particularly from the age group of 60 and more. The FTC data shows that these BTC investors were key targets of the hackers.
These scams involved malicious actors deceiving victims to unknowingly transfer funds using Bitcoin ATMs under false pretenses. In an interview with Cointelegraph, a spokesperson from Bitcoin depot shared his concerns along with discussing the consumer protection measures and strategies for preventing such scams.
The US Federal Trade Commission (FTC) has warned that no legitimate regulator or company will ever demand payment in BTC or other digital assets using a Bitcoin ATM. It also noted:
“[…] 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.“
A spokesperson from the Bitcoin Depot further stated that the company has implemented different protective measures in order to combat scams. These include posting scam warnings on their kiosks and incorporating on-screen prompts to alert customers of potential scam risks. “This is a common practice for any legitimate kiosk operator,” he said.
Bitcoin ATMs to Implement Consumer Protection Measures
The spokesperson from Bitcoin Depot offered several security measures for consumers to stay safe while using the Bitcoin ATMs which include never sending BTC or other digital assets “to unknown digital wallets or individuals they don’t 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,” said the Bitcoin Depot spokesperson.
Last month on August 7, a local government committee in Chico, California, reviewed the regulation of Bitcoin ATMs. Andy Pickett, the chief administrative officer for Butte County, outlined efforts to regulate these ATMs by treating them “more like a bank.” Pickett noted that each jurisdiction would need to “pass its own ordinance” to enforce such regulations, acknowledging that “any ordinance would likely face legal challenges.”
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
