As Bitcoin ATM fraud continues to rise, seniors are being hit the hardest. Losses related to these scams are set to reach over $110 million by 2023, according to the Federal Trade Commission (FTC), which is almost ten times the amount reported in 2020. This is quite disturbing as it shows how exposed seniors are to Cryptocurrency fraud in the modern world.
These kiosks, which can be used to buy Bitcoin instantly, have now become a new gateway for fraudsters. Such cryptocurrency-powered ATMs are now standard in locations such as convenience stores or gas stations across the United States. However, it has also made cryptocurrency services accessible to the public through these platforms and, unfortunately, has also led to the creation of a gateway for fraudsters.
How Scams Target Seniors
Most hackers impersonate employees of a particular company, government agency, or tech gurus at companies like Apple or Microsoft. They do this by calling victims, informing them that there has been an attempt to steal their identity or that their accounts have been compromised, and that they need to deposit money into a Bitcoin ATM.
The deposited funds are quickly converted into Bitcoin and the money is transferred directly to the scammer's Bitcoin wallet, leaving the victim helpless.
The research services found that people over 60 are three times more likely to be scammed with such scams than younger people. The demands seem very urgent and the schemes used are so subtle that it is almost impossible for many people to avoid falling victim to the scam before it is too late.
Efforts to combat the scam
Even in the presence of such fraud, there are challenges in the fight against Bitcoin ATM fraud. In their defense, companies that operate Bitcoin ATMs, such as Bitcoin Depot, claim to have taken several measures, such as scam warnings and live chat support. This is a problem that cannot be completely combated, according to Scott Buchanan, the company’s chief operating officer.
The FTC suggests that potential victims take a moment to check all requests to transfer money via Bitcoin. It should be emphasized how important it is to take it slow and check the legitimacy of such requests, as these scams are becoming more common.
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