A Bitcoin ATM is a kiosk where users can buy Bitcoin and other cryptocurrencies using cash or a debit card.
For some people, Bitcoin ATMs offer a quick and easy way to buy or send cryptocurrency.
However, for scammers, these machines have become a tool to trick people out of their money.
For some people, Bitcoin ATMs (or BTMs) offer a quick and easy way to buy or send cryptocurrency. However, for scammers, these machines have become a tool to trick people out of their money.
Fraud linked to BTMs has been rising rapidly in recent years. According to the FTC Consumer Sentinel Network, losses from BTM scams have increased nearly tenfold from 2020 to 2023, hitting $65 million in just the first half of 2024. This number likely represents only a portion of the actual harm caused, as many frauds go unreported.
Also read: Bengaluru engineer loses nearly Rs 2 lakh in OLX QR code scam: Here’s what happened
What is a Bitcoin ATM and how it works
A Bitcoin ATM is a kiosk where users can buy Bitcoin and other cryptocurrencies using cash or a debit card. Certain Bitcoin ATMs also offer two-way functionality, allowing users to not only purchase Bitcoin but also sell it in exchange for cash.
How scammers are using Bitcoin ATMs
Scammers have found ways to exploit Bitcoin ATMs in fraudulent schemes. Many scams begin with a phone call, message, or fake security alert, claiming that there is suspicious activity on your account. The scammer may pose as a government agent or tech support from a company like Microsoft or Apple, creating a sense of urgency.
They’ll then direct you to withdraw cash from your bank and deposit it into a BTM, claiming it’s a “safe” way to protect your money or resolve the issue. Scammers provide a QR code to scan at the machine, which sends the money directly to the scammers’ wallet.
To avoid falling victim to these scams, never respond to unsolicited calls or messages, and don’t follow instructions to withdraw cash or deposit it into a BTM. Always verify any claims by contacting the company or government agency directly.
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Ayushi Jain
Tech news writer by day, BGMI player by night. Combining my passion for tech and gaming to bring you the latest in both worlds. View Full Profile
