Federal Trade Commission Issues Warning on Crypto ATM Scams, Says Victims Losing $10,000 on Average: Report

The Federal Trade Commission (FTC) is reportedly issuing a warning about crypto ATM scams, noting that victims are losing thousands of dollars in the scheme.

According to a new report by NBC News, the regulatory body is warning consumers that bad actors are stealing funds via Bitcoin (BTC) ATMs, or machines that convert cash directly into the top crypto asset by market cap.

Data from the FTC finds that in the first half of the year, $65 million has been stolen by scammers using Bitcoin ATMs. Furthermore, it shows that from 2020 to 2023, the amount of money drained in this type of scam has shot up by a staggering 10X to over $110 million.

The FTC says victims are losing an average of $10,000 from crypto ATM scams.

The report says the fraudsters pose as bank employees, government workers or tech support agents to try and get victims to deposit money into the ATMs.

In one highlighted case, a woman was defrauded after scammers told her that her Social Security number was frozen. They told her that to mend the issue, she’d have to withdraw cash and deposit it into a Bitcoin ATM, promising that the funds would show back up in her bank account the next day.

Says senior data researcher at the FTC Emma Fletcher,

“When your heart starts thumping that there’s something seriously wrong, it may very well be that while you’re trying to protect yourself from fraud, you’re actually being defrauded.”

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