Bitcoin ATM Scams Steal Millions Targeting US Elderly

Bitcoin ATMs across the United States are being exploited by scammers to defraud victims, particularly targeting elderly individuals through fear-based tactics involving fake legal threats or compromised bank accounts. Maryland retiree Diane Reynolds lost her entire savings of $13,100 after being tricked into converting her money into Bitcoin at a local ATM operated by Athena Bitcoin, which is now facing a lawsuit by Washington, D.C. Attorney General Brian Schwalb for failing to implement adequate anti-fraud safeguards despite profiting from high fees on scam-related transactions. Similar scams have occurred in Massachusetts, where victims were coerced to pay money they supposedly owed for missed jury duty using Bitcoin ATMs, prompting law enforcement warnings and calls to ignore such demands. Authorities report a surge in Bitcoin ATM scams nationwide, with losses totaling nearly $247 million in 2024, leading to regulatory alerts and some municipalities banning these kiosks to protect vulnerable populations. While Athena Bitcoin denies the allegations and claims to have safety protocols, officials emphasize the urgent need for improved protections against these sophisticated cryptocurrency scams. Law enforcement agencies advise the public to be cautious of unsolicited calls demanding money and to report suspicious activities immediately.