Bitcoin ATM Scams Cost Americans Nearly $250M In 2024. Here's How To Avoid Falling Victim To Similar Scams

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U.S. consumers lost nearly $250 million in 2024 to fraud involving Bitcoin ATMs, more than double the losses of the previous year, ABC News reported, citing the FBI.

These Bitcoin machines are typically located in convenience stores, gas stations and malls, and they let users insert cash and send it directly to a cryptocurrency wallet almost instantly. Unfortunately, once the cash goes in, there's almost no chance of recovering the money if you're scammed.

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The scammers typically target victims by calling or texting them, telling them that their bank account is compromised or they're under investigation, and that they need to act now to save their money. The scammer then demands the victim withdraw cash and deposit it at a Bitcoin ATM. Once the victim feeds the cash and scans a QR code, the funds are sent straight into the scammer's crypto wallet.

Victims span all ages, but older adults especially are at risk since they aren't familiar with how these scams work. According to ABC News, one recent case involved an 85‐year-old woman who nearly lost over $23,000 of her life savings at a gas station machine before a bystander informed the police.

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How to Protect Yourself From Bitcoin ATM Scams

1. Never deposit cash into a Bitcoin ATM. Legit banks or government agencies will never ask for payment in crypto via an ATM.

2. Perform your due diligence. Treat every unsolicited call, email or text with suspicion. If someone says your account is at risk and you have to send them money immediately, they're using the classic pressure tactic and it's most likely a scam.

3. Set up safeguards. Use strong, unique passwords, enable two-factor authentication on your accounts, and keep your antivirus software updated. If you think you're being scammed, report it as quickly as possible to your bank and local law enforcement.

4. Talk about it. Discuss these types of scams with older family members who might be less familiar with them.

5. Verify the contact info. If someone says they're from your bank, the IRS or a utility company or tech support, make sure to double check the number they’re calling from. If you want to make sure they’re legit, hang up and call the official number on the company's website.

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This article Bitcoin ATM Scams Cost Americans Nearly $250M In 2024. Here's How To Avoid Falling Victim To Similar Scams originally appeared on Benzinga.com