The US Federal Trade Commission (FTC) revealed that Bitcoin ATM (BTM) scams have accumulated a total of $114 million when converted to the United States dollar in 2023. The federal agency also shared that last year's number is 10 times more than what was recorded from 2020 to 2023, with fraudulent behavior thriving in stealing money through this means.
It was also revealed by the FTC that this may not be the exact number of what was truly lost by victims, as most financial fraud cases do not get reported.
FTC Reveals Bitcoin ATM Scams Accumulated $114M in 2023
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According to a recent report by the FTC, crypto scammers have since taken advantage of the widely available Bitcoin ATMs all around the country, and in 2023 alone, scammers were able to steal $114 million worth of money from these machines.
It was revealed by the agency that scammers have gained widespread access to Bitcoin ATMs, with some people losing money by simply using it.
Moreover, scammers have since carried out business impersonation, government impersonation, and tech support scams to target crypto investors.
This Year, Bitcoin ATM Scams' Total Lost is Catching Up
While 2023 saw a record-breaking tenfold increase over the past three years with $114 million stolen, 2024 is catching up according to the FTC, and the authorities believe that it is on track to do so. In the first half of 2024 alone, over $65 million was lost from Bitcoin ATM scams, with the median losses this year at $10,000.
The FTC also revealed several guidelines on how to avoid scams including avoiding opening links or messages, as well as answering calls from unknown numbers. Additionally, services would not require users to use BTMs to fix issues or protect their accounts.
Bitcoin ATM and What It Offers Users
Bitcoin ATMs are machines that give users real-world money which would be deducted from their top cryptocurrency assets usually via QR code authentication or app vouchers. However, these are known for being infamous, and the United Kingdom's Financial Conduct Authority (FCA) has deemed Bitcoin ATMs illegal in 2022, shutting down its operations countrywide.
They have also seen a significant problem worldwide, and in early 2023, Cash Cloud, a renowned Bitcoin ATM supplier to the US and Brazil, declared bankruptcy. This left Cash Cloud with around $500 million in liabilities.
Past events have also revealed significant problems with its operations, with a BTM provider known as Coin Cloud facing a massive breach that threatened the entire crypto industry. It was believed that sensitive information was accessed by threat actors in this notorious attack.
Bitcoin ATMs are facing a growing problem now, as last year, $114 million worth of money was stolen through scams, and 2024 is on track to match these notorious numbers due to the rise in fraudulent transactions.
