Q: What are these Bitcoin ATM scams targeting the elderly, so I can warn my parents?
A: Bitcoin ATM scams are one of the fastest-growing ways criminals are stealing money, especially from older adults. Despite the name, these scams have nothing to do with investing in cryptocurrency. The Bitcoin ATM is simply the final step in a pressure-driven con designed to move money somewhere it can’t be recovered.
The lures
It usually starts with a phone call, text, email or computer pop-up claiming there’s an urgent problem. The caller or message says they’re from the IRS, Social Security, a bank, Medicare, tech support or even local law enforcement. The message is always alarming: their account has been compromised, their benefits are suspended or a warrant is about to be issued in their name. The goal is to create fear and urgency before they have time to think or ask questions.
Once the scammers have their attention, the instructions begin. They’re told to withdraw cash from their bank immediately (first red flag) and go to a nearby Bitcoin ATM (second red flag), often located in a grocery store, gas station or convenience store. The scammer stays on the phone the entire time, coaching them step-by-step, convincing them that this is the only “secure” way to protect their money or resolve the issue. They may even be told to keep the transaction secret to avoid “complicating” the “investigation.”
At the Bitcoin ATM, they’re instructed to scan a QR code or enter a wallet address provided by the scammer. When they insert the cash, it’s instantly converted to cryptocurrency and sent to the scammer’s account. Unlike a credit card charge or a check, there is no dispute process, no fraud department and no way to reverse the transaction. Once it’s done, the money is gone.
Elderly victims are routinely being convinced to feed tens of thousands of dollars into Bitcoin ATMs, so the threat is growing.
Why it’s so convincing
What makes Bitcoin ATM scams so effective is that they feel legitimate. The machines look official and they’re in familiar places. The instructions sound technical enough to be believable, and the pressure keeps people from stopping to ask a simple question: why would the government, a bank or tech support ever require payment through a Bitcoin ATM?
In the case of a bank alert scam, they’ll convince the victims that their account has been compromised and the only way to “secure” their funds is to transfer it to a Bitcoin account.
Teach your family members
It’s hard to see clearly when the scammers are so convincing, but try to get your family to understand that no legitimate organization will ever ask you to pay a bill, fix a problem or protect your money using a Bitcoin ATM. Not the IRS. Not Social Security. Not their bank. Not the police. ANY request to use a Bitcoin ATM to “resolve a situation” is absolutely a scam.
Instruct them that if they’re ever contacted with an urgent demand for payment, they should hang up and call the organization back using a phone number they can verify. Instruct them to always talk to a family member or trusted advisor before taking any action. If it’s a computer pop-up, never call the number and seek a trusted technical resource to determine the validity. These delays are often all it takes to stop a scam in its tracks.
Bitcoin ATMs aren’t going away, and neither are the criminals who misuse them. Awareness before they ever come in contact with this growing scam is their best defense.
