The Federal Trade Commission (FTC) warns consumers to be cautious of unexpected calls or messages urging them to withdraw cash and advises consulting trusted individuals before taking action.

Experts like Steve Weisman stress that no legitimate business or government agency will direct individuals to use a Bitcoin ATM for payments, urging extreme caution if approached.

Scammers are increasingly exploiting Bitcoin ATMs to perpetrate fraud, taking advantage of their legitimate function to convert cash into cryptocurrency.

Victims are often instructed to deposit cash into specific accounts at nearby Bitcoin ATMs, framed as urgent situations, using QR codes that transfer money directly to the scammers.

In the first half of 2024, Americans lost around $65 million to scams involving Bitcoin ATMs, with older adults being particularly vulnerable to fraudsters posing as officials.

Data from the FTC indicates that consumer losses from Bitcoin ATM scams surged dramatically from $12 million in 2020 to $114 million in 2023, highlighting the growing threat.

One notable case involved Joseph Buentello, an 80-year-old from Grand Prairie, Texas, who was scammed into withdrawing $5,000 and depositing it into a Bitcoin ATM after being misled about his son's incarceration.

Recovering funds after being scammed through Bitcoin ATMs can be extremely difficult; however, in one instance, a sheriff's department managed to return $15,000 to a victim after seizing it from an ATM.

Despite some states implementing regulations on Bitcoin ATMs, many areas, including Texas, remain unregulated, leaving users exposed to potential scams.

There are over 49,000 crypto ATMs across the U.S., with interactive maps available to locate them, including more than 100 in Ohio.

Unlike traditional ATMs, Bitcoin ATMs utilize QR codes for transactions, allowing users to cash out Bitcoin and receive cash quickly.

Bitcoin ATM operators claim to have measures in place to protect users from fraud, including multiple screens that warn about potential scams.