FTC Reports Tenfold Increase in Bitcoin ATM Fraud Losses

The United States Federal Trade Commission (FTC) estimated that from 2020 to 2023, losses from cryptocurrency ATM fraud increased nearly tenfold. In the first half of 2024, they exceeded $65 million, with actual damages potentially much higher.

Fraudsters contact potential victims via email or phone, posing as employees of government agencies, large companies, or tech support specialists. They report supposed suspicious activity or unauthorized payments on the victim’s bank account.

The scammers then allegedly persuade the victim to withdraw cash and deposit it into a specified wallet via a Bitcoin ATM, supposedly to protect their funds.

In the first six months of 2024, the median loss reported by victims was $10,000. This scheme most frequently targets individuals aged 60 and over.

According to Coin ATM Radar, the number of crypto ATMs worldwide reached 38,797 at the time of writing.

Previously, BaFin seized 13 cryptocurrency ATMs operating without the necessary permits in Germany.

In January 2024, the FTC launched an investigation into alliances between tech giants and AI companies.