According to the Federal Trade Commission (FTC), there has been a “massive” increase in the amount of money consumers have lost to Bitcoin ATM-related scams.

The amount of money lost has increased tenfold since 2020, reaching over $110 million in 2023. In the first six months of the year, losses from Bitcoin ATM fraud totaled over $65 million.

The median loss in the first half of the year was $10,000, according to the FTC. However, people over 60 were three times more likely to lose money to these scams than younger adults.

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Fraudsters constantly use Bitcoin ATMs, which look like traditional ATMs and are located in high-traffic areas such as supermarkets and gas stations, to exploit consumers.

A CoinFlip bitcoin ATM in a supermarket in Sydney, Australia, on Thursday, August 22, 2023. (Brent Lewin/Bloomberg via Getty Images / Getty Images)

The machines accept cash in exchange for cryptocurrency, but scammers are trying to trick consumers into depositing cash to “protect” their savings, the FTC reported.

Grant Cardone, CEO and fund manager of Cardone Capital and Cardone Training Technologies, told FOX Business that those most at risk of falling victim to this scam are “easily driven by fear of loss or hope of gain.”

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“To become a victim, the scammer must convince their victim that they are in danger of losing something and must act immediately, or that they have a chance of winning something and must act immediately,” Cardone said, adding that “every scam is associated with fear and hope.”

Sheldon Weisfeld, partner at Event Horizon Capital and former CEO of CoinVault ATM, told FOX Business that Bitcoin ATMs in particular are an attractive tool for scammers.

A sticker advertising Dogecoin is seen on a cryptocurrency ATM at a laundromat in Hong Kong, China, on Friday, March 18, 2022. (Paul Yeung/Bloomberg via Getty Images / Getty Images)

CoinVault ATM was the first U.S.-licensed MSB Bitcoin ATM operator, providing terminal access for cash buy and sell transactions to digital cryptocurrency customers interested in Bitcoin.

These machines “don’t require face-to-face interaction like withdrawing cash from a bank or making electronic transfers,” Weisfeld said. There are also 31,000 Bitcoin ATMs across the country, making accessing a machine much easier, he added.

However, since these machines are located in very public places, Weisfeld said that “those who are more knowledgeable about Bitcoin can ideally keep an eye on those who may not be as well informed.”

Overall, any fraud is dangerous “because it is almost impossible to keep up with the constantly changing landscape, especially given the speed of technological development,” said Weisfeld.

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“Even those who are knowledgeable and smart enough to know better can easily be scammed. It’s very easy to scour the internet for valuable personal information that the scammers then use to create authenticity when talking to you or impersonating you,” Weisfeld said.

However, there are signs at ATMs alerting users to possible scams and advising everyone to be cautious when making deposits to avoid being cheated.

According to Weisfeld, the ATM operator is also required to file a suspicious activity report if the user calls support and the call gives the impression that they are in trouble.

Here are tips from the FTC to help you avoid scams:

1. Scammers want to pressure you, so go slowly and check everything first. Talk to someone you trust before you take any action.

2. Do not withdraw cash if you receive an unexpected call or message. Only scammers send you such messages.

3. Don’t believe anyone who tells you that you need to use a Bitcoin ATM, buy gift cards, or transfer money to protect it or fix a problem. Companies and government officials will never ask you to do this.