By COLLEEN TRESSLER
Federal Trade Commission
Most of us frequently use ATMs to withdraw cash, but Bitcoin ATMs (or BTMs) are different. These machines, often found in convenience stores, grocery stores, gas stations, and similar locations, allow users to buy or send cryptocurrency.
Unfortunately, scammers are increasingly using BTMs to steal money. A new FTC Data Spotlight reveals how people are losing millions to fraud at BTMs and offers tips on how to protect yourself and others.
These scams often begin with a call or message claiming something is wrong—such as suspicious activity on your Amazon account or unauthorized charges on your bank account. The caller may say your money is at risk or that you're linked to illegal activities like money laundering or drug smuggling, but they can help.
They then instruct you to withdraw cash from your bank, investment, or retirement accounts and deposit it into a specific BTM to supposedly protect your money or resolve the issue. However, once you deposit the cash, it goes straight into the scammer’s wallet.
To avoid falling victim to this scam:
Do not trust anyone who tells you to use a Bitcoin ATM to protect your money or solve a problem. Legitimate businesses and government agencies will never ask you to do this.
Never withdraw cash in response to an unexpected call or message. Only scammers will make such a request.
Verify the story independently. If you suspect there’s a genuine issue with one of your accounts, contact your bank, investment, or retirement company using a phone number, website, or app you know is legitimate.
Avoid using any contact information provided in the unexpected call or message, as it will likely lead you back to the scammer.
Report the scam by visiting ReportFraud.ftc.gov.