Bitcoin ATM Scams

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Last year, scams involving Bitcoin ATMs topped $110MM, more than 10x in 2020.

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Here’s how they usually go down:

1. A fraudster contacts a victim pretending to be a customer service representative from a financial institution
2. They text the victim a QR code connected to a digital wallet
3. They direct the victim to scan the code and deposit cash into the Bitcoin ATM, which converts it into Bitcoin that immediately gets transferred to the scammer

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These scammers in particular are targeting senior citizens. The FTC said consumers over the age of 60 were 3x more likely to be duped out of cash in these schemes.

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Crypto is not inherently a scam but continues to attract many bad actors, given its lack of traceability.