Cryptocurrency scams are on the rise, with scammers now turning to Bitcoin ATMs (BTMs) to exploit unsuspecting victims in high-traffic areas such as convenience stores and gas stations. These machines have become prime targets for fraudsters, leading to a significant increase in losses over the past few years.
According to data from the Federal Trade Commission Consumer Sentinel Network, fraud losses at BTMs have surged nearly tenfold from 2020 to 2023, exceeding $65 million in just the first half of 2024. These figures represent only a fraction of the actual harm caused by scammers, as many cases go unreported.
The FTC attributes this spike in losses to the growing prevalence of cryptocurrency as a payment method for various scams, including fake investment opportunities. In particular, BTM scams often involve government and business impersonation schemes, as well as tech support scams.
Individuals are lured into these scams through calls or messages claiming suspicious activities on their accounts or unauthorized charges. Scammers may use fake security warnings to impersonate reputable companies like Microsoft or Apple, leading victims to believe their money is at risk or linked to illegal activities. The scammers then instruct victims to deposit cash into BTMs to resolve the fabricated issues, ultimately transferring the funds to their wallets.
To protect yourself from falling victim to cryptocurrency scams like these, the FTC recommends the following precautions:
– Avoid clicking on links or responding to unexpected calls or messages. Verify the legitimacy of the sender independently.
– Take time to evaluate requests before taking action. Consult with a trusted individual before proceeding.
– Refrain from withdrawing cash in response to unsolicited communications. Scammers often use this tactic to manipulate victims.
– Be cautious of anyone instructing you to use a Bitcoin ATM or purchase gift cards to resolve issues. Legitimate entities will not make such demands.
If you encounter a scam or become a victim of fraud, report it to the FTC at reportfraud.ftc.gov. Stay vigilant and protect yourself against cryptocurrency scams in today’s digital landscape.
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