Fraud targeting seniors is on the rise, up 33% year-over-year... With the number of ATMs surpassing 45,000, crime is on the rise.
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According to the Federal Bureau of Investigation (FBI), reported losses from Bitcoin ATM fraud reached $333.5 million (approximately KRW 481.6 billion) as of November of this year. This represents a 33% increase compared to the total losses of approximately $250 million (approximately KRW 361 billion) last year. Considering that losses in 2023 were $110 million (approximately KRW 158.8 billion), the scale of losses has more than tripled in just two years.
Experts attribute the surge in fraud to the rising price of Bitcoin and the widespread availability of ATMs. Currently, there are over 45,000 Bitcoin ATMs across the United States. These machines, mostly unmanned, allow users to deposit cash, and the Bitcoin is instantly transferred across borders to a designated digital wallet.
The scam is similar to voice phishing, a common practice in Korea. Criminals impersonate government agencies, banks, telecommunications companies, IT companies, or lawyers and lure victims by convincing them of an "emergency" via phone call, text message, or email. They typically send a QR code, link, or phone number, pressuring them to take action to resolve the issue. Once the victim scans the QR code at an ATM and deposits cash, the Bitcoin is immediately transferred to the scammer's digital wallet, making the transaction virtually untraceable.
The FBI warns that seniors, particularly those unfamiliar with digital devices, are a prime target. Scammers use time pressure and complex technical jargon to confuse victims, then lure them to Bitcoin ATMs.
A Consumer Financial Protection Bureau (CFPB) official explained, "Bitcoin ATMs are becoming a preferred method for criminals because of their anonymity and instantaneous nature," and "once transferred, cryptocurrency cannot be reversed, making it nearly impossible to recover damages."
The FBI emphasized that government agencies and legitimate businesses will never request money transfers via Bitcoin ATMs, and urged people to immediately verify any suspicious contacts through official channels. They also encouraged people to actively inform family and friends, especially the elderly, about these scams.
There are growing calls in the US cryptocurrency industry for ATM operators to adopt self-regulation, including displaying warning messages to prevent fraud, setting transaction limits, and strengthening identity verification. Some are even calling for stronger federal regulation of Bitcoin ATMs.
Joohoon Choi joohoon@blockstreet.co.kr
