"Nobody is safe": Avoid falling for a Bitcoin ATM scam.

In the first six months of 2024, Americans experienced losses nearing $65 million due to scams related to Bitcoin ATMs. These devices offer an accessible way for people to venture into the world of cryptocurrencies, increasingly appearing in supermarkets, convenience stores, gas stations, and other public places. The ease of access, combined with the lack of consumer protection and industry regulation, makes these kiosks an attractive target for scammers.

One particular case involves a man from the Houston area, who received a call from a criminal posing as a law enforcement officer. The scammer informed him that he had an arrest warrant for failing to appear for jury duty and that the only way to avoid legal trouble was to deposit money into a Bitcoin ATM at a nearby supermarket. This tactic resulted in a loss of nearly $60,000 for the victim, who was so pressured that he couldn't think clearly.

According to the Federal Trade Commission (FTC), although consumers over 60 years old are the most frequently targeted, the average loss in these schemes is $10,000. Since 2023, there has been nearly a tenfold increase in losses from this type of fraud. Scammers are cunning and manage to emotionally manipulate their victims, leading them to make irrational decisions.

Regarding the operation of Bitcoin ATMs, there has been an increase in their presence as cryptocurrencies become more popular. It is estimated that there are around 49,000 machines in the United States. Unlike traditional ATMs, Bitcoin ATMs usually do not allow withdrawals, and scammers often use tactics that include creating new profiles and instructing victims to send digital codes to the criminal.

Once the money is transferred to the account, recovering it becomes nearly impossible, as cryptocurrency transactions are difficult to trace and not well regulated. This contrasts with credit card fraud, where financial institutions can quickly take action to protect their customers. Scammers are exploiting the "unsafe technology" surrounding cryptocurrencies.

To help consumers detect this type of fraud, certain warning signs have been identified. The most notable is any request to deposit money into a Bitcoin ATM, regardless of who is asking. Caution should also be exercised if someone creates a sense of urgency or seems to have too much personal information about the victim. Promises of high returns on Bitcoin investments are also a clear indication of fraud.

It is essential that those who believe they have fallen victim to such a scam report it to the authorities and their banks to help create a record and possibly ensure that these criminals are caught.