Surge in Bitcoin ATM Scams Targets Growing Number of Older Adults
Scammers are employing a new tactic involving a square-shaped QR code that leads victims to deposit cash into a Bitcoin ATM, thinking they are safeguarding their assets. These fraudsters often work in groups, posing as government or tech company representatives to deceive individuals. The dark web, where phone numbers are readily available, serves as a breeding ground for such scams.
The scam usually kicks off with scammers reaching out to victims, claiming there is an urgent issue with their account through what appears to be a legitimate notification. According to Fletcher, scammers aim to create a sense of urgency that is hard to ignore, convincing people that the problem is severe. One victim, Marilyn LoCascio from Indiana, fell prey to a group of fraudsters who posed as Apple tech support, bank representatives, and government officials, leading her to lose $31,500.
LoCascio’s ordeal began with a fake security alert on her iPad, followed by a fraudulent call where she was informed of a hack involving a payment to an adult website from her account. Despite sensing something was amiss during her interactions with the scammers, a conference call with a fake U.S. Treasury official reassured her. Although unfamiliar with Bitcoin, she followed instructions due to the apparent urgency of the situation.
Cryptocurrency-related scams have surged alongside the rising value of Bitcoin, currently at around $60,000. Fletcher noted that while scams like fraudulent investment schemes primarily target younger individuals, a significant portion of losses from Bitcoin ATM scams affect older adults. These ATMs have become a prime target for scammers seeking cryptocurrency from older victims.
Bitcoin ATM operators emphasize their efforts to combat fraud and illicit activities by providing scam warnings at various stages of transactions. Scott Buchanan, the COO of Bitcoin Depot, highlighted the company’s stringent regulations and consumer protection policies. While facing a lawsuit from a user alleging victimization by a fraudster at one of its kiosks, Bitcoin Depot maintains its innocence, stating that preventing every instance of fraud is challenging.
Fletcher advised caution and thorough consideration before sending money through a Bitcoin kiosk at someone’s request, as swift responses to such messages can lead to financial losses. While some individuals have managed to alert ATM operators and recover their funds, such occurrences are infrequent. Taking a moment to verify the legitimacy of requests can help individuals avoid falling victim to these prevalent scams.
