Last Updated on 04/09/2024 by Arun jain
Financial scams take many forms: a leading technology company allegedly alerts you that your online account has been hijacked, or someone impersonating a bank executive claims that your credit card has been charged unauthorized. More elaborate schemes might involve AI and fake law enforcement officers offering to “help” you with your plight – all you have to do is hand over stacks of cash to an anonymous driver outside your house.
An obvious red flag? According to the Federal Trade Commission, such scams increasingly involve so-called Bitcoin ATMs. Kiosks, known as Bitcoin Teller Machines (BTMs) and often found in places like convenience stores, bars, and gas stations, are similar to traditional ATMs. But instead of letting you withdraw cash, users can usually buy or sell cryptocurrencies using cash as well as debit or credit cards. Another difference is that BTMs are linked to digital wallets instead of bank accounts.
In 2023, consumers reported losing $114 million to scams involving BTMs — a nearly 900% increase over the previous three years, the FTC said Tuesday. report. Losses through June of this year are nearly $66 million, indicating that the trend is only increasing, while the average amount people lost was $10,000.
According to the Better Business Bureau, crypto-related fraud is now at an all-time high Common financial scams. Criminals often target older consumers, with the FTC noting that people 60 and older are more than three times as likely to be bitten by BTM scams than younger people.
In a typical BTM theft, the fraudster may claim that your computer has been hacked, or that your bank accounts are connected to drug smuggling or money laundering. They can help – but only if you follow their instructions to the letter.
This effort may also include an offer to connect you with a representative of the FTC, IRS, or other government agency.
At that point, the FTC explains, the scammer will instruct victims to withdraw cash from their bank and drive you to the nearest BTM, where they’ll write down a QR code for you to scan at the machine. It zips the money directly into the thieves’ crypto wallet.
According to the FTC, the bottom line: “Don’t trust anyone who says you need to use a Bitcoin ATM to protect your money or fix a problem. Real businesses and government agencies would never do this – anyone who does is a scammer.
Ellen Sherter is a senior managing editor with CBS News. He covers business, economics, finance and workplace issues for CBS MoneyWatch.
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