In a rising wave of scams plaguing the nation, cybersecurity expert David Derigiotis has identified Bitcoin kiosks as the primary method employed by fraudsters in 2025. The alarming financial cost associated with these scams has surged to over $330 million, which marks a significant increase from the $250 million reported in 2024. This figure represents nearly a $100 million rise in losses for unsuspecting victims, many of whom have little to no understanding of cryptocurrency.
According to Derigiotis, the typical victim of these scams is around 71 years old, illustrating a particularly vulnerable demographic falling prey to these deceptive practices. Criminals have leveraged increasingly sophisticated methods to execute their schemes, often guiding individuals through a seemingly simple process to withdraw funds from their accounts. Subsequently, victims are directed to Bitcoin kiosks where they deposit their hard-earned money, believing they are fulfilling a legitimate financial obligation.
Derigiotis highlights familiar scams, such as fake juror notices or fabricated warrants for arrest, acknowledging that these frauds have evolved with technological advancements. Scammers are now utilizing artificial intelligence tools to generate convincing fake documents in mere moments. By inputting specific prompts, these criminals can produce documents that appear legitimate, enhancing their credibility during interactions with victims. Fresh text messages and phone calls, often masked with spoofed numbers from various global locations, further complicate detection and prevention efforts.
One of the primary reasons Bitcoin is favored by scammers is its borderless nature, which allows for transactions without geographical restrictions. More critically, Bitcoin transactions are nearly irreversible, meaning once victims send money, recovering it becomes a daunting challenge. Derigiotis notes that Bitcoin kiosks are often conveniently located near potential victims, reducing the chances of intervention by bank tellers or other financial personnel who might recognize the fraudulent activity.
Despite the grim reality of this situation, there is a glimmer of hope. Derigiotis emphasizes the importance of education as the first line of defense against such scams. He advises individuals to remain vigilant and cautious. If someone requests payment via Bitcoin or gift cards, it is a clear indication of a scam, and the recommended response is to immediately disconnect from the dialogue.
With ongoing efforts to spread awareness and educate the public, experts like Derigiotis aim to empower individuals to protect themselves from these increasingly prevalent schemes targeting their financial stability and security.
