This marks a sharp increase from $12 million in losses reported in 2020. The situation has intensified in 2024 alone, with consumers already losing a substantial $65 million to these deceptive schemes.

The evolution of scams has led to the emergence of various versions, but they all share a common goal: to trick unsuspecting individuals into falling victim to scammers. Previous tactics included wire transfers, gift card purchases, and even individuals handing over cash in a shoebox. The latest variant now involves Bitcoin ATMs.

Bitcoin ATMs are physical machines found in places like gas stations and grocery stores, allowing users to buy or sell cryptocurrency. Scammers initiate contact with their victims through phone calls, text messages, or online pop-ups, often impersonating bank or government officials. They claim that the victim's bank account has been compromised and prompt them to take immediate action.

Here's how the scam unfolds: the scammers instruct their victims to withdraw a significant amount of cash and deposit it into a Bitcoin ATM, which they may refer to as "safety lockers" to create a sense of security. At the ATM, the scammers send a QR code to the victim to scan. Unbeknownst to the victim, this code transfers all their cash to the scammer's crypto wallet.

In 2024, victims reported a median loss of $10,000 to Bitcoin ATM scams. The FBI had already issued a warning about this scheme in 2021, prompting Vermont and Minnesota to enact laws imposing daily transaction limits on crypto kiosks in an effort to curb such fraudulent activities.

As with any scam, it is crucial to exercise caution and verify the legitimacy of any email or phone call claiming to be from a reputable company or financial institution. Never withdraw money based solely on instructions received from a random interaction.

In addition to Bitcoin ATM scams, other cryptocurrency-related scams are also on the rise. Instances of deepfake crypto scams on YouTube, imposters posing as journalists to drain victims' digital wallets, and elaborate "pig butchering" scams have all come to light recently. One notable case involved the arrest of a former bank CEO who embezzled millions to invest in a bogus crypto scheme.

It is evident that the prevalence of cryptocurrency scams demands increased vigilance from consumers. Remaining informed about the latest scam trends and exercising skepticism can help protect against falling victim to these fraudulent schemes.