Bitcoin ATMs are a favorite tool of scammers. Here's how to avoid losing money
Most of us are familiar with ATMs that can be used to withdraw cash, but Bitcoin ATMs are becoming more common.
They are also a favorite tool for scammers.
The Federal Trade Commission said there has been a massive increase in the amount of money consumers have reported losing to scammers involving Bitcoin ATMs. Since 2020, the total has increased nearly tenfold to more than $110 million in 2023.
How the scams work
Many of these Bitcoin ATM scams start with a call or message about something that is supposedly wrong.
For example, the fraudster might claim there's suspicious activity on your Amazon account or unauthorized charges on your bank account.
The caller will say your money is at risk. You're instructed to withdraw cash from your bank, investment, or retirement accounts and deposit it into a specific Bitcoin ATM.
The person will assure you that moving your money will protect it or fix the alleged problem.
It's a lie. Once you deposit the cash, it goes straight into the scammer's wallet.
Protect yourself
This scam is easy to avoid.
Don't believe anyone who says you need to use a Bitcoin ATM to protect your money or fix a problem.
Real businesses and government agencies will never do that, and anyone who does is a scammer.
