Bitcoin ATMs: the last link in $11B U.S. crypto scams

Scammers are directing victims to Bitcoin ATMs and other crypto kiosks to turn cash into cryptocurrency. In 2025 the FBI’s Internet Crime Complaint Center recorded 181,565 complaints tied to cryptocurrency with more than $11 billion in reported losses. IC3 identified 13,460 complaints that explicitly involved crypto kiosks, with $388,981,267 in adjusted losses.

The typical fraud starts online through a fake bank alert, a cloned voice, a romance approach or a tech-support pop-up. Scammers then instruct victims to withdraw cash, go to a nearby kiosk, scan a supplied QR code and remain on the phone until the transaction is complete. Advances in generative AI have been used to create convincing fake profiles, voice clones and videos that increase pressure on victims to act quickly.

Once cash is exchanged for cryptocurrency and sent to a wallet controlled by the scammer, reversing the transfer is usually difficult. Tracing on the blockchain may be possible, but funds can move through multiple wallets and exchanges before recovery is feasible. Agencies describe a narrow window between the cash withdrawal and blockchain settlement when an intervention is still possible.

IC3 reported kiosk-related complaints rose 23% from 2024, while losses tied to those complaints increased 58%. More than half of kiosk complainants were over 50, accounting for over $302 million in losses. The complaints cover transactions at machines located in convenience stores, gas stations, supermarkets and other retail locations.

Federal guidance highlights several common tactics and warning signs. FinCEN’s notice on convertible virtual currency kiosks states, “Kiosk purchases look like a standard ATM transaction to a user, but the wallet address that receives the crypto may belong to someone else.” IC3’s kiosk guidance notes that “scammers often keep victims in constant phone or online contact until payment is completed,” and that criminals may instruct victims to split deposits across machines or locations.

Kiosk operators typically charge fees of 7% to 20% per transaction. Scammers tolerate those fees because cryptocurrency can be moved quickly after receipt, reducing the chance a victim will recover funds. For legitimate buyers, high fees are costly; for criminals, rapid movement of funds outweighs the fee structure.

Regulators and states have taken steps aimed at the point of sale. FinCEN urged financial institutions to identify and report suspicious activity involving kiosks and warned operators that do not meet Bank Secrecy Act obligations are vulnerable to abuse. California’s Department of Financial Protection and Innovation enforces a $1,000 per-person daily limit on kiosk purchases. Other state measures include operator registration, transaction caps, clearer warnings, receipts and conditional refund policies.

Banks, kiosk operators, store employees and family members are identified as potential interruption points during the brief period between a cash withdrawal and blockchain settlement. After funds leave a kiosk and move on-chain, available tools to stop or reverse transfers are limited.