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How a Bitcoin ATM scam works
The scam often starts with an unexpected call, message, or computer pop-up claiming there is suspicious activity, an unauthorized charge, a legal problem, or a security threat. The person may pretend to represent a government agency, a business, or a technology company. They claim the victim’s money is at risk or that an investigation is underway, then push for immediate action and secrecy.
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Next, the scammer tells the person to withdraw cash and deposit it at a nearby or specified Bitcoin ATM. They may describe the payment as a way to protect money or resolve the invented problem. The victim scans a QR code supplied by the scammer, which directs the cryptocurrency to the scammer’s wallet. Machines commonly called Bitcoin ATMs or BTMs can also handle cryptocurrencies other than Bitcoin, according to the FTC’s August 2024 overview.
Common stories scammers use
- Government impersonation: The caller claims there is a legal issue, investigation, or fee that must be handled immediately.
- Business impersonation: The person pretends to represent a bank or another company and alleges a problem with an account or transaction.
- Tech-support impersonation: A pop-up or caller claims a device or account is compromised and urges the victim to move money for protection.
The details vary, but the pattern is similar: a frightening claim, pressure to act, and a demand to pay through a Bitcoin ATM. The FTC describes these impersonation tactics and payment demands.
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Is it a scam if someone tells me to go to a Bitcoin ATM?
Yes. If someone tells you to use a Bitcoin ATM to protect your money, fix an account problem, pay a government fee, or avoid legal trouble, treat it as a scam. The FTC says legitimate businesses and government agencies will not direct people to pay this way. Its warning is direct: “Go to a Bitcoin ATM” is a scam; nobody legitimate will insist that you get cryptocurrency.
Warning signs to watch for
- Someone you did not contact first says your money is in danger and must be moved immediately.
- The caller tells you to withdraw cash after an unexpected call or message.
- They insist you stay on the phone, keep the matter secret, or avoid talking to family, your bank, or other trusted people.
- They provide a phone number, link, or QR code and tell you to use it rather than verify the claim independently.
These pressure tactics are consistent with the FTC’s advice on spotting and avoiding scams.
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What to do if someone sends you to a Bitcoin ATM
- Stop and do not withdraw or deposit cash. Do not scan the QR code or send cryptocurrency.
- End the contact. Do not keep talking just because the caller says you must stay on the line or keep the issue secret.
- Verify independently. Use contact information you find yourself for the bank, business, or agency—not a number, link, or QR code supplied by the person who contacted you.
- Talk to someone you trust before making any payment. The FTC advises slowing down and checking the claim with another person.
What to do if you already sent money through a Bitcoin ATM
- Contact the ATM operator or cryptocurrency exchange immediately. Explain that the transaction was fraudulent and ask whether it can be reversed and the money refunded.
- Report the fraud to the FTC at ReportFraud.ftc.gov.
Recovery may be difficult because cryptocurrency payments do not have the same legal protections as credit- and debit-card payments. Still, contacting the operator or exchange promptly and reporting the incident are the recommended next steps. The FTC’s scam-response guidance also explains how to report fraud.
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What FTC loss figures show
In an August 2024 analysis of Consumer Sentinel Network reports, the FTC estimated that reported losses involving Bitcoin ATMs rose nearly tenfold from 2020 to 2023, reaching more than $110 million in 2023. In the first half of 2024, reported losses exceeded $65 million, and the median reported loss involving a Bitcoin ATM was $10,000.
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For that same first half of 2024, adults aged 60 and over were more than three times as likely as younger adults to report a Bitcoin ATM loss; older adults accounted for more than two out of every three dollars reported lost through these machines. These are estimates based on reports and analysis of report narratives, not a count of every loss. Fraud is underreported, so the figures do not capture the full harm. See the FTC’s data spotlight for the figures and their reporting periods.
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