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Quick Overview

• Awareness is Prevention

• Criminals Use Bitcoin ATMs to Steal Money from Sen …

Awareness is Prevention

How can anyone fall for this scam?

It’s a question people frequently bring up when they hear stories of seniors that have lost their life savings and their pride to criminals. What most people don’t realize is that these criminals are working off a carefully constructed handbook created by experts in social engineering.

For most people, it’s not if they get scammed, it’s when. Awareness and education is key to protecting ourselves and our loved ones from falling victim.

This week, the US Attorney’s Office of Maine released a brochure and program designed at helping drive awareness about senior scams. Hopefully, more states will follow.

Below, we dive into the Bitcoin ATM scam that is growing rapidly in the US. As more seniors become aware of gift card scams, the criminals figure out alternative ways to steal money.

Stay safe out there,

Criminals Use Bitcoin ATMs to Steal Money from Seniors in Latest National Scam

Imagine losing your life savings with just a single scan—Bitcoin ATM scams are making this nightmare a reality for seniors.

Did you know that Bitcoin ATM scams are on the rise, and unfortunately, seniors are the main target. These scams have become a new frontier, allowing criminals to exploit the popularity of cryptocurrency with the convenience of an ATM.

What You Need to Know

According to recent data provided to NBC News by the Federal Trade Commission, the amount of money lost to Bitcoin ATM scams has skyrocketed nearly tenfold since 2020, surpassing $110 million in 2023. Alarmingly, these scams disproportionately affect older adults, who are more than three times as likely as younger individuals to fall victim to these fraudulent activities.

Bitcoin ATMs resemble traditional ATMs and operate similarly by allowing users to conduct deposits and withdrawals. However, instead of handling cash, these machines facilitate transactions involving cryptocurrencies. This digital twist has opened the door for scammers to develop cunning strategies that prey on unsuspecting individuals.

How Do These Scams Work?

Typically, these scams begin with a phone call or message from someone purporting to be a customer service agent or official. The fraudster claims that there has been an attempted identity theft or account breach and provides a square-shaped QR code. This code is linked to a digital wallet where the victim is instructed to deposit cash via a Bitcoin ATM. The deposited funds are converted into bitcoin and swiftly transferred to the scammer's account.

Emma Fletcher, a senior data researcher at the FTC, explains, "Scammers are using these machines as a way to take money from people more than we've seen in the past." In many cases, fraudsters impersonate employees from reputable companies or government agencies, making their deception even more convincing.

Real-Life Examples

One poignant example is that of 76-year-old Marilyn LoCascio from Indiana. She lost $31,500 to a scam involving individuals posing as an Apple tech support specialist, a bank representative, and two government officials. The scam began with a seemingly legitimate security alert on her iPad, warning her of a hack. Despite sensing something amiss, the urgency and fear instilled by the scammers convinced her to follow their instructions.

This tragic story is not isolated. With the rise in the value of Bitcoin, now worth about $60,000, fraudsters have become more brazen in their attempts, knowing that older adults are less familiar with digital currencies and more susceptible to their tactics.

Protective Measures and Advice

While Bitcoin ATM operators like Bitcoin Depot claim to have robust security measures in place, including scam warnings and customer support, they acknowledge that they cannot prevent every instance of fraud. Therefore, it is crucial for individuals, especially seniors, to remain vigilant.

Here are some key steps to protect yourself and your loved ones:

• Slow Down: If you receive a message or call about an urgent financial issue, pause and assess the situation before taking any action.

• Verify the Source: Contact the company or agency directly using verified contact details to confirm the legitimacy of the claim.

• Educate Yourself: Familiarize yourself with the workings of Bitcoin and other cryptocurrencies. Knowledge is a powerful tool against deception.

• Talk to Someone You Trust: If you're unsure about a transaction or notice something suspicious, consult a trusted friend or family member.

By taking these precautions, seniors can safeguard their assets and avoid falling prey to Bitcoin ATM scams.

The Bigger Picture

Cryptocurrency has opened up new, exciting opportunities in the financial world. However, it also presents challenges, particularly in protecting vulnerable populations from exploitation. As these scams continue to rise, concerted efforts are needed to educate and equip seniors with the necessary skills to navigate the digital financial landscape safely.

Remember, staying informed and cautious is the best defense against becoming a victim. Encourage open conversations about financial security and share resources that can help seniors stay protected.