The FBI's Internet Crime Complaint Center (IC3) has reported that Americans lost over $388 million to scams involving cryptocurrency kiosks — commonly known as crypto ATMs or Bitcoin ATMs — during 2025. The figure underscores the rapid growth of crypto ATM fraud as a preferred method for scammers seeking to convert victims' cash into untraceable digital assets.
How Crypto ATM Scams Work
Crypto ATM scams follow a well-established playbook that exploits both the anonymity of cryptocurrency and the prevalence of Bitcoin kiosks in grocery stores, pharmacies, and gas stations across the United States:
- Initial contact — Scammers reach out via phone, text, email, or social media, posing as government agencies (IRS, Social Security Administration, FBI), tech support representatives, or romantic interests
- Manufactured urgency — Victims are told they owe back taxes, their Social Security number has been compromised, their computer has been hacked, or a loved one is in legal trouble requiring bail
- Cash extraction — Victims are instructed to withdraw cash from their bank accounts to avoid "freezing" by authorities or to pay "fees"
- ATM direction — Scammers direct victims to a specific nearby crypto ATM, often staying on the phone throughout the transaction
- QR code payment — Victims are given a QR code (controlled by the scammer) to scan at the ATM and deposit cash in exchange for cryptocurrency sent to the scammer's wallet
- Unrecoverable — Once transferred, the cryptocurrency is nearly impossible to recover
Who Is Being Targeted
The FBI's data highlights that older Americans are disproportionately targeted, with victims over the age of 60 accounting for a significantly higher proportion of reported losses. Common pretexts include:
| Scam Type | Pretense Used |
|---|---|
| Government impersonation | IRS debt, Social Security fraud, Medicare fraud |
| Tech support fraud | Computer virus, account compromise, "Microsoft" or "Apple" support |
| Romance scams | Long-distance relationship leading to "emergency" funding request |
| Utility scams | Threatening service disconnection unless immediate payment is made |
| Lottery/prize scams | "You've won" but must pay taxes or fees in advance |
Scale of the Problem
The $388 million figure for 2025 represents a dramatic increase over prior years:
- The FBI previously reported $114 million lost to crypto kiosk scams in 2023
- That figure rose to an estimated $250 million in 2024
- The 2025 total of $388 million represents a roughly 55% year-over-year increase
The IC3 notes that these figures likely underrepresent actual losses, as many victims — particularly older adults — do not report fraud due to embarrassment, confusion, or lack of awareness about reporting mechanisms.
Why Crypto ATMs Enable Fraud
Cryptocurrency kiosks have become attractive to scammers for several reasons:
- Ubiquity — There are approximately 40,000+ crypto ATMs in the United States, making them accessible to nearly any victim
- Irreversibility — Crypto transactions cannot be reversed once confirmed on the blockchain
- Anonymity — Scammer wallets are often created fresh for each campaign and quickly emptied
- Familiarity barrier — Many victims lack experience with cryptocurrency, making them less likely to question the transaction
- Speed — Funds can be extracted and laundered within minutes of the deposit
How to Protect Yourself and Others
The FBI, CISA, and FTC provide consistent guidance for avoiding crypto ATM scams:
Red flags to watch for:
- Any unsolicited contact claiming you owe money or have been compromised
- Requests to keep the transaction "confidential" or not tell family members
- Instructions to scan a QR code at an ATM to "secure" your funds
- Extreme urgency that prevents you from pausing to verify
Protective measures:
- Hang up and verify — Contact the alleged agency directly using a number from their official website, not one provided by the caller
- No legitimate agency requests crypto — The IRS, SSA, FBI, Medicare, and utilities do not accept payment via cryptocurrency kiosks
- Talk to a trusted person first — Before any large cash withdrawal, consult a family member, friend, or financial advisor
- Report it — File a complaint at IC3.gov and contact your local FBI field office
Regulatory Response
In response to the growing fraud epidemic, several states and federal bodies have taken action:
- CFPB has issued consumer guidance specifically targeting crypto ATM fraud
- Multiple states have enacted regulations requiring crypto ATM operators to display fraud warnings, implement daily transaction limits, and add delays or human-review requirements for first-time users
- BitAccess, Bitcoin Depot, and Coinstar — major crypto ATM operators — have implemented anti-fraud measures including spending limits, extended hold times, and pop-up warnings
The FBI encourages anyone who believes they have been victimized to file a complaint with the IC3 at ic3.gov regardless of the dollar amount involved, as aggregate data helps identify and disrupt criminal networks.