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Scammers use phone calls and messages to trick people into Bitcoin ATM transfers.
Once money is sent as cryptocurrency, it cannot be recovered or traced.
Awareness and immediate reporting can prevent losses and stop fraudsters.
Bitcoin ATMs, or BTMs, are kiosks that are connected to the Bitcoin network and allow people to buy or sell cryptocurrencies using cash or cards. These machines are designed to simplify the process of using digital money. However, scammers have found a loophole in the system to trick people into transferring their funds to suspicious accounts.
Scammers usually contact their targets through phone calls, texts, or emails. They pretend to be professionals, such as a bank employee, a government officer, or tech support, and send fake alerts to customers about a problem within their bank account.
The fraudsters create panic or a sense of urgency among their victims by using common threats of their accounts being hacked or by accusing them of being involved in a drug trafficking or money laundering crime.
The predators manipulate their target to go to their regular ATMs, withdraw cash, deposit it into a Bitcoin ATM, and send it to the scammer’s wallet through a QR code. This transaction is irreversible. Cryptocurrencies are also hard to trace, so the scammers rarely get caught.
Case 1: Barbara Earl from Oklahoma received a call from someone claiming to be a sheriff. She was told she had missed jury duty and would face arrest unless she paid $2,000 in Bitcoin. She drove 200 miles to follow the instructions and deposit the money at a Bitcoin ATM. Barbara received another fake call but recognized it this time and reported it.
Case 2: Hardik Umraniya from Rajkot, India, accepted a friend request on Facebook from an unknown person. He was convinced to invest in USDT. After seeing the initial small profits, he made thirteen more transactions worth Rs. 31.5 lakh. When he was asked to pay a security fee to withdraw the money, Hardik realized it was a scam and reported the incident to the cybercrime branch.
Case 3: In South Hadley, Massachusetts, a store employee deposited $11,000 from the store safe into a Bitcoin ATM after following a scammer’s instructions. Police could not recover the money. Other victims in the area lost $48,000 and $4,900 in similar scams.
Case 4: In Selinsgrove, Pennsylvania, an elderly resident lost $22,000 after receiving a fake call from someone pretending to be from the government.
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The Federal Trade Commission reported that consumers lost over $65 million to Bitcoin ATM scams in the first six months of 2024. This was almost five times more than the amount in 2020. People over 60 are three times more likely to fall for these scams compared to younger adults.
US states are trying to regulate Bitcoin ATMs. Massachusetts requires operators to register each machine, limit daily transactions to $1,000 per person, and provide help and fraud warnings.
Some cities in Minnesota have banned Bitcoin ATMs completely. At the federal level, lawmakers have proposed the Crypto ATM Fraud Prevention Act. This would make Bitcoin ATM operations more transparent and outline rules to prevent fraud.
Here are some important measures that people should consider to avoid becoming a victim of these scams:
Verifying unexpected calls and messages.
Treat requests to send money quickly with suspicion.
Learn how to use BTMs safely.
Older adults and people new to cryptocurrency should be educated about scams.
Suspected fraud should be reported immediately to the FTC or local authorities.
Also Read: The Future of Anonymous Bitcoin Transactions in Spain: Bitomat ATMs
The number of Bitcoin ATM scams each year is increasing at a rapid pace. People are losing millions of dollars to scammers who manipulate victims into transferring money to their wallets. Having awareness about such cybercrimes, staying vigilant, and reporting suspicious activity are some of the best preventive measures against these frauds.
1. How do Bitcoin ATM scams usually start?
Scammers contact victims by phone, text, or email, pretending to be banks, officials, or tech support.
2. Why are Bitcoin ATM scams hard to reverse?
Once cryptocurrency is sent, it cannot be reversed, and tracing scammers is extremely difficult.
3. Who is most targeted by Bitcoin ATM scams?
Older adults are most vulnerable, with people over 60 three times more likely to fall victim.
4. What should people do if they suspect a Bitcoin ATM scam?
Verify messages, avoid urgent money requests, educate others, and report to the FTC or local authorities.
5. How much money was lost to Bitcoin ATM scams recently?
Consumers lost over $114 million in 2024, with $65 million lost in the first half of 2025 alone.
