Bitcoin ATM scammers defraud elderly individuals of $110 million: study

Bitcoin ATM scammers managed to defraud senior citizens of $110 million last year through deceptive tactics that often kick off with a seemingly helpful customer service call. Reports of significant financial losses due to fraudulent activities involving money transmitted via bitcoin ATMs surged to nearly ten times the 2020 figures, as per data shared by the Federal Trade Commission (FTC) with NBC News.

According to the data, individuals aged 60 and above were over three times more likely to fall prey to these scams compared to younger adults. Emma Fletcher, a senior data researcher at the FTC, highlighted how these bitcoin ATMs have become a prime target for scammers looking to exploit older adults.

The scam typically unfolds with scammers posing as customer service representatives or officials, alerting victims about potential identity theft or account breaches. The fraudster then sends a QR code linked to a digital wallet to the victim. Believing they are safeguarding their funds, the victim scans the code and transfers money into the bitcoin ATM, ultimately benefitting the scammer.

One victim, Marilyn LoCascio, aged 76, fell victim to a fraud syndicate masquerading as an Apple tech support specialist, a bank representative, and two government officials. The scheme commenced with a fake security alert on her iPad, leading to a series of misleading interactions.

Research indicates that older adults are more susceptible to financial exploitation due to cognitive decline, diminished memory functions, lack of support, and loneliness. Additionally, they may struggle to trust their instincts, making them more vulnerable to scams.

Globally, there are close to 40,000 bitcoin ATMs in operation, although some countries like the UK and Singapore have prohibited their use. In the US, bitcoin ATMs resemble traditional cash-dispensing machines but facilitate transactions involving cryptocurrencies instead of fiat currency. These ATMs are commonly located in places such as convenience stores, gas stations, and laundromats.

In conclusion, the rise in bitcoin ATM scams targeting senior citizens underscores the importance of vigilance and awareness, especially among older adults who may be more susceptible to financial fraud. Authorities and individuals alike must remain cautious and informed to combat such fraudulent activities effectively.