Bitcoin ATM scams are on the rise, with the Federal Trade Commission (FTC) reporting a staggering increase in losses related to these frauds. According to FTC data provided to NBC News, reported losses from Bitcoin ATM scams soared to over $110 million in 2023—nearly a tenfold increase from 2020. The surge in scams is disproportionately affecting older adults, who are more than three times as likely to be duped compared to younger individuals.
Emma Fletcher, a senior data researcher at the FTC, noted that scammers have increasingly turned to Bitcoin ATMs as a new method of defrauding consumers. These machines, which resemble traditional ATMs but handle cryptocurrency transactions, have become a prime target for fraudsters. The rapid expansion of Bitcoin ATMs—there are nearly 32,000 across the U.S., up from just over 4,000 in early 2020—has made them more accessible and thus more vulnerable to misuse.
Scammers often impersonate legitimate entities, such as customer service representatives or tech support, to convince victims that they need to urgently transfer funds via Bitcoin ATMs to prevent financial loss or address supposed security issues. The scam typically begins with a convincing phone call or message, followed by a QR code linked to a digital wallet. Victims are directed to deposit cash into the Bitcoin ATM, which is then converted to cryptocurrency and sent to the scammer’s wallet.
A notable case involves Indiana resident Marilyn LoCascio, 76, who lost $31,500 after scammers posed as Apple tech support, a bank representative, and U.S. Treasury officials. The fraud began with a fake security alert on her iPad, leading her to call a number that appeared to be from Apple. Despite her growing suspicions, the sense of urgency created by the scammers led her to follow their instructions, ultimately resulting in a substantial financial loss.
The rise in Bitcoin scams parallels the increasing value of Bitcoin, which currently hovers around $60,000, nearly double its value from a year ago. Despite this, older adults are particularly vulnerable, with approximately $2 out of every $3 lost in such scams belonging to individuals nearing or in retirement.
Bitcoin ATM operators, including Bitcoin Depot—the largest provider of such machines—assert that they implement measures to prevent fraud, such as scam warnings during transactions and customer support services. However, the company has faced lawsuits related to fraud incidents at its kiosks and acknowledges that, despite their efforts, they cannot prevent every instance of fraud.
Fletcher advises caution, emphasizing the importance of verifying the legitimacy of any urgent requests for money transfers, particularly through Bitcoin ATMs. “It’s natural for people to want to respond rapidly to such a message, but because these scams are so prevalent, it’s really important that people slow down and check it out,” she said.
As Bitcoin ATM scams continue to proliferate, it is crucial for consumers—especially older adults—to stay informed and vigilant to protect themselves from these increasingly sophisticated fraud schemes.
I am Aparna Sahu
Investment Specialist and Financial Writer
With 2 years of experience in the financial sector, Aparna brings a wealth of knowledge and insight to Investor Welcome. As an accomplished author and investment specialist, Aparna has a passion for demystifying complex financial concepts and empowering investors with actionable strategies. She has been featured in relevant publications, if any, and is dedicated to providing clear, evidence-based analysis that helps clients make informed investment decisions. Aparna Sahu holds a relevant degree or certification and is committed to staying ahead of market trends to deliver the most up-to-date advice.
