Last year, Bitcoin ATM scammers targeted senior citizens, successfully stealing $110 million through schemes that often began with a seemingly “concerned” customer service phone call.
According to data from the Federal Trade Commission (FTC) provided to NBC News, reports of fraud involving money sent through bitcoin ATMs—electronic crypto kiosks for buying and selling bitcoin—have surged nearly tenfold since 2020. The data also revealed that Americans over the age of 60 were more than three times as likely to be victimized compared to younger adults.
“These bitcoin ATMs appear to have opened a gateway for scammers seeking cryptocurrency, particularly targeting older adults,” said Emma Fletcher, a senior data researcher at the FTC.
The typical scam involves a fraudster contacting the victim while posing as a customer service representative or an official, warning them of attempted identity theft or an account breach. The scammer then sends the victim a QR code linked to a digital wallet.
Believing they are protecting their assets, the victim scans the QR code and deposits money into the bitcoin ATM, unknowingly transferring the funds directly to the scammer.
One such victim, 76-year-old Marilyn LoCascio from Indiana, lost $31,500 to a fraud group that posed as an Apple tech support specialist, a bank representative, and two government officials. The scam began when she received what appeared to be a security alert on her iPad.
“I just called the number without thinking it could be anything other than Apple,” LoCascio recounted. “A gentleman answered the phone, supposedly a tech, and even gave me a case ID, and then it just sort of mushroomed from there.”
Research from the University of Florida suggests that older adults are more vulnerable to financial exploitation due to cognitive decline, lower memory function, and increased feelings of loneliness. They also may have a decreased ability to trust their gut instincts.
Bitcoin ATMs, which are legal in the U.S., look and function like traditional ATMs but deal in cryptocurrencies instead of cash. While there are nearly 40,000 bitcoin ATMs worldwide, they are banned in countries like the UK and Singapore. In the U.S., they are commonly found in convenience stores, gas stations, and laundromats.