Rising Bitcoin ATM Scams Targeting Older Adults
Scammers employ various tactics to execute a successful deception. In some cases, multiple fraudsters collaborate in a particular scheme, masquerading as employees of governmental bodies or businesses, including prominent tech giants like Microsoft or Apple, as outlined by the FTC.
The initiation of a scam often occurs when malicious actors obtain a victim’s phone number, many of which are increasingly accessible on the “dark web,” an internet segment beyond the reach of conventional browsers and search engines, such as specific chatrooms, facilitating illicit activities.
Fraudsters frequently reach out to victims alleging an urgent issue with an account, sometimes using a message that mimics a legitimate alert, like a pop-up notification.
“They’re trying to create a situation that is really hard to ignore,” Fletcher mentioned. “From there, people are convinced that the problem is actually extremely serious.”
Marilyn LoCascio, a resident of Indiana aged 76, recounted losing $31,500 to a fraudulent group posing as an Apple tech support specialist, a bank representative, and two government officials. It all commenced when she received what appeared to be a security alert on her iPad, leading her to a scammer who informed her she had been hacked, with a payment to an online adult website made from her account.
“I just called the number without thinking. … It would be anything other than Apple,” LoCascio expressed. “A gentleman answered the phone who was supposedly a tech, and he even gave me a case ID, and then it just sort of mushroomed from there.”
During her interactions with the scammers, LoCascio began to sense something was amiss. However, after being involved in a conference call with an individual impersonating a U.S. Treasury official, she was reassured that everything was in order. She admitted to being unfamiliar with Bitcoin but felt compelled to follow instructions due to the apparent urgency of the situation.
Scams involving cryptocurrency have surged alongside the Bitcoin price increase, now valued at around $60,000, approximately double its worth a year ago. Fletcher noted that while many such frauds, like dubious investment schemes, tend to target younger individuals, about $2 out of every $3 lost in a bitcoin ATM scam belonged to individuals near or over retirement age.
“These Bitcoin ATMs seem to have opened up sort of a gateway for scammers who are after cryptocurrency to target older adults,” she remarked.
Bitcoin ATM operators emphasize having preventive measures in place to combat fraud and illicit activities.
“We provide numerous scam warnings at our machines in nearly every stage of a consumer transaction to prevent individuals from falling victim to frauds and scams,” stated Scott Buchanan, the chief operating officer of Bitcoin Depot.
The company, self-described as the largest bitcoin ATM provider, highlighted its stringent regulations, extensive compliance, and consumer protection policies. Buchanan encouraged consumers with concerns about potential scams to reach out to their customer support team before proceeding with any transactions.
While Bitcoin Depot has not faced any criminal charges, it is currently embroiled in at least one lawsuit from a user who alleges victimization by a fraudster at one of its kiosks, a claim the company has refuted.
“Unfortunately, like all financial institutions, we cannot prevent every instance of fraud that occurs using our services,” acknowledged Buchanan.
Fletcher emphasized that although some individuals have promptly identified scams and alerted the ATM operator to recover their funds, such occurrences are rare. The prudent course of action, she suggested, is to pause and reconsider before sending money through a Bitcoin kiosk at someone’s request.
“It’s natural for people to want to respond rapidly to such a message, but because these scams are so prevalent, it’s really important that people slow down and check it out,” Fletcher advised.
