Posted on Monday, November 3, 2025
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by AMAC, D.J. Wilson
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1 Comments
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A growing fraud
Cryptocurrency scams are types of fraud whereby criminals steal money from people hoping to invest in digital currency. These scams frequently involve the promise of high returns to lure investors. While scams of this nature can be carried out in numerous ways, such as through fake celebrity endorsements or malicious apps, one way of tricking people is gaining momentum. Scammers are increasingly convincing seniors to use Bitcoin ATMS (BTMs) that convert cash into cryptocurrency. They use this scam to steal from senior victims.
Scary statistics
Bankrate shares some scary statistics about Bitcoin scams. Due to anonymity and accessibility of Bitcoin ATMs, they can easily be used by scammers and fraudsters. They explain that consumers report losing over $110 million to scammers in 2023, and more than $65 million in the first six months of 2024 alone, according to Federal Trade Commission (FTC) data. Scammers love this because it is nearly impossible to track them down to recover funds. They hope to get victims to transfer Bitcoin to their wallet to pull off the scam. As a rule of thumb, Bankrate warns, understand that real businesses and government agencies will never ask for payment in Bitcoins. That is the sign of a scammer.
Seniors are targets
Seniors are increasingly being targeted for BTM scams, perhaps due to their trusting nature, financial status, or possible cognitive declines. In BTM scams, scammers may pose as government officials, law enforcement agents, big businesses, tech support, or banking institutions. Here, scammers typically contact potential victims by email, text message, or phone. In addition to assuming false identities, scammers create a fake problem that they say requires immediate action. For instance, scammers may pretend to be from the police and threaten fines or arrest. Or they may pretend to be a representative from the bank calling about a compromised account. Each situation is completely made up. Next, they direct potential victims to transfer funds to resolve the problem. Seniors who are unfamiliar with technology may believe they are taking the right action, when in fact they are being scammed. The funds they believe they are depositing by converting cash to Bitcoins will be stolen by the scammer. And it will likely be impossible to recover those funds.
Pulling the wool over people’s eyes
Scammers are experts at tricking people and convincing them to act. These cunning evildoers create a sense of urgency that essentially bypasses a person’s logical thinking. One senior citizen referred to being scammed as being put under a spell. So, what can people do to protect themselves from scammers? First and foremost, do not engage with unfamiliar callers. Never answer calls from numbers you don’t know or respond to emails or messages from strangers. If you think the party reaching out to you is legitimate, say from your banking institution, don’t engage with that contact. Hang up without sharing any personal information. Next, independently call your bank directly using the official phone number you have for them. (Never use a number a potential scammer gave to you.) If the bank indicates that your account is fine, rest in the knowledge the party who contacted you is a scammer.
An unregulated world
Bitcoin and cryptocurrencies are largely unregulated by the federal government. Understand that Bitcoin exchanges and accounts are also not insured by the Federal Deposit Insurance Corporation (FDIC). Additionally, Bitcoin transactions lack the oversight of a bank or a cashier. In other words, there is no one to stop your transaction. This is why scammers are increasingly turning toward Bitcoin ATMs to pull off their scams. It’s safe to assume that anyone instructing you to transfer funds to Bitcoin ATMs is a scammer, as no legitimate business or agency would ever instruct you to do so.
Here are some sneaky ways scammers may try to trick people:
- A scammer may pretend to be a grandchild in trouble and tell their victims to wire money through an ATM. This is a grandparent scam.
- A scammer may pretend to be from the IRS, Social Security office, or police department and state there is a warrant for arrest. This is an impersonation scam.
- A scammer may pretend to be from tech support and send a pop-up ad or make a call stating there is a computer virus or unauthorized access to an account. This is a tech support scam.
- A scammer may build trust over time and ask people to invest or provide access to their banking account. These scammers often make false promises to get rich quickly. This is an investment scam.
Commonalities
In each case, the scammer reaches out to potential victims and attempts to trick them by pretending to be someone they are not. They create a fake problem and instruct their victims to act by making a payment or divulging personal information such as bank account numbers. They often use pressure to act immediately or require victims to keep the transaction a secret.
Sniffing out a scam
The FTC advises that many scams start with a call or message about something supposedly wrong. Scammers “… might say there’s suspicious activity on your Amazon account, for example, or unauthorized charges on your bank account (untrue). The caller will say your money is at risk, or even that you’re somehow linked to money laundering or drug smuggling, but they can help (also false). They tell you to withdraw cash from your bank, investment, or retirement accounts and deposit it into a specific BTM.” Scammers will pretend to want to protect you, but they really intend to harm you by stealing your money.
Don’t buy the farm
No matter how legitimate a scammer might sound, anyone who calls or messages you and directs you to withdraw money to deposit it elsewhere is a scammer. Some scammers may act friendly and tell you to stay on the phone as you perform financial transactions under their direction. That is another telltale sign of a scam. Scammers may also ask you to keep the transaction a secret – further signs of a scam. Scammers may also ask you to verify personal information such as your Social Security number. This is a trick used by scammers to get you to share it. Anyone who scares you or threatens you is a scammer. Physical threats should be promptly reported to the police. Additionally, if you believe you’ve been scammed out of money, report it to the proper authorities.
Helpful reporting websites:
Most scams can be reported to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov.
Other helpful scam resources include the FBI Internet Crime Complaint Center (IC3) for cyber-enabled fraud at ic3.gov.
Additionally, the Consumer Financial Protection Bureau (CFPB) is another resource where people can submit financial scam complaints using an online form. Visit https://www.consumerfinance.gov/complaint/.
Ignore anything suspicious
If you receive a suspicious call or message, simply ignore it. Once you answer or respond, you put yourself in jeopardy of being scammed. If you accidentally answer a call and suspect it’s a scammer, hang up immediately. Do not worry about being rude. If you accidentally divulged personal information, such as your bank account number, call your bank (using their official phone number that you look up yourself) to immediately report the incident. Remember that reporting scams straight away may help protect your accounts, possibly recover lost funds, and keep others from being similarly scammed.
Here are some additional safeguards:
- Continually learn about latest scams to avoid becoming a victim. Understand that scammers are sly at telling lies and tricking people.
- Make it a policy to NOT engage with random callers, emails and texts.
- Be on guard. If you receive a random call or message, it’s best to be skeptical. Do not automatically believe everything you are told.
- Trust your instinct. If you feel something is off, immediately disengage the contact.
- Keep things private. Make it a policy to NEVER share personal or bank information.
- NEVER withdraw money or make payments to fix a problem based on someone calling you or texting you or emailing you.
- If someone is instructing you to move funds – it is likely a scammer. Stop and do not proceed with the transaction.
- If you are in a frail state of mind and are worried about decision making, run ALL financial transactions past a trusted accountant, financial advisor, or family member. Never conduct transactions alone.
The best defense is a good offense
Most seniors can handle their finances and make solid decisions. However, it is still possible for smart people to be scammed. That is why folks at AMAC are dedicated to reminding senior citizens to protect their personal information as well as accounts. They also encourage older Americans to spread the word about the latest scams to work as a united force against scammers.
Disclosure: This article is purely informational and is not intended as a substitute for professional financial advice.
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