The rise of cryptocurrency has brought with it an increase in fraudulent activities, with Bitcoin ATM scams emerging as a significant concern. According to a recent report released by the Federal Trade Commission (FTC) on Tuesday, scammers operating through Bitcoin ATMs have managed to defraud consumers of a staggering $65 million in the first six months of 2024 alone. This figure marks a substantial increase in losses, with the total amount rising nearly tenfold from $12 million in 2020 to a whopping $114 million by 2023.
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The scam has evolved over the years into various iterations, all with the same ultimate goal:骗取受害者付款. Consumers have reported instances of being conned into wiring money, purchasing gift cards, and even placing large sums of cash in shoeboxes. The Bitcoin ATM variant has become particularly prevalent.
Bitcoin ATMs are physical machines located in places like gas stations and grocery stores where individuals can buy or sell cryptocurrencies. To execute their scams, fraudsters contact victims through phone calls, text messages, or online pop-ups. They often pretend to be bank or government officials, convincing their targets that their bank accounts have been compromised and immediate action is required.
The scammers then instruct the victims to withdraw a substantial amount of cash and deposit it into a Bitcoin ATM, which they may refer to as a secure lock, to ensure the safety of their funds. Once at the ATM, the fraudsters send a QR code to the victims, which, when scanned, transfers the cash directly into the scammers’ cryptocurrency wallets.
This year, the median loss reported by victims of Bitcoin ATM scams is $10,000. The Federal Bureau of Investigation (FBI) issued a warning about this type of scam in 2021, and since then, states like Vermont and Minnesota have enacted laws imposing daily transaction limits on cryptocurrency ATMs.
The report highlights the importance of verifying the legitimacy of emails or phone calls received from companies or financial institutions claiming to be legitimate. It is crucial not to withdraw money based on instructions from random interactions, the FTC warns.
The increase in Bitcoin ATM scams is part of a broader trend of cryptocurrency-related fraud. Deepfake cryptocurrency scams have popped up on platforms like YouTube, where bad actors impersonate journalists to empty victims’ digital wallets. There has also been a rise in pig butchering scams, which led to the arrest of a former bank CEO who embezzled millions of dollars from a fake cryptocurrency scheme.
The pig butchering scam, as it is known, involves luring victims into investing in a fraudulent cryptocurrency plan, only to have their investments vanish. The former bank CEO was sentenced for his role in this scam, which underscores the severity and sophistication of cryptocurrency-related fraud.
The proliferation of Bitcoin ATMs, coupled with the anonymity provided by cryptocurrencies, has made it easier for scammers to operate. While the technology behind cryptocurrencies offers numerous benefits, it also presents new challenges for law enforcement and consumer protection agencies.
The FTC’s report serves as a stark reminder of the need for vigilance in the rapidly evolving world of digital currencies. Consumers are advised to be cautious and skeptical of unsolicited requests for money or investment opportunities, especially those involving cryptocurrencies. As the cryptocurrency landscape continues to evolve, so too do the methods used by scammers, making it imperative for individuals to stay informed and protected.
In conclusion, the $65 million loss reported in the first half of 2024 is a wake-up call for consumers to be more aware of the risks associated with cryptocurrency transactions. By staying informed and verifying the legitimacy of interactions, individuals can better protect themselves against these increasingly sophisticated scams.
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