FTC: Bitcoin ATM Scams Surged by Massive 1000% in Last Four Years

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The US Federal Trade Commission (FTC) has warned that no legitimate regulator or company will ever demand payment in BTC or other digital assets using a Bitcoin ATM. It also noted:

“[…] neither Bitcoins nor any ATMs can safeguard your funds. To be precise, no cryptocurrencies can. Regardless of what the speaker claims, there’s simply no concept of a government-held Bitcoin account or digital wallet. No such thing as a centralized Bitcoin vault exists.”

As a responsible crypto investor, I’ve made sure that the Bitcoin Depot I use takes necessary precautions to prevent scams. They do this by displaying warnings about scams directly on their kiosks and using on-screen prompts to alert customers of potential risks. This is standard practice for any trustworthy operator of such machines, as they understand the importance of keeping our investments secure

Bitcoin ATMs to Implement Consumer Protection Measures

The representative from Bitcoin Depot suggested various safety precautions for users when interacting with Bitcoin ATMs, emphasizing that they should refrain from transferring Bitcoins or other digital assets to unidentified digital wallets or people who aren’t known and trusted on a personal level

A Bitcoin Depot representative stated that regularly, they collaborate with regulatory bodies and law enforcement to aid their clients… While Bitcoin Automated Tellers (or “Bitcoin ATMs”) serve as useful instruments for gaining access to digital money, similar to any financial service, these can be exploited by unscrupulous individuals

Last month, on the 7th of August, a local committee in Chico, California, discussed the regulation of Bitcoin Automated Teller Machines (or BTMs). Andy Pickett, the chief administrative officer for Butte County, highlighted the strategy to regulate these machines by considering them “more like a bank.” Pickett emphasized that each individual area would require crafting its own laws (ordinances) to enforce such regulations. He also acknowledged that any proposed legislation could potentially encounter legal difficulties

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2024-09-04 16:30