Bitcoin ATMs across the United States have become a major channel for financial scams, with federal data showing losses exceeding $333 million in 2025. Regulators are intensifying scrutiny on the roughly 31,000 kiosks, viewing them as a systemic risk rather than just an educational challenge. The fraud disproportionately affects older Americans, prompting calls for stricter controls.
The surge in bitcoin ATM-related fraud has drawn sharp regulatory attention in the US. According to federal reports, Americans lost more than $333 million to scams involving these cryptocurrency kiosks in 2025 alone. The FBI logged over 12,000 complaints connected to the machines from January through November of that year, nearly double the previous year's figures, as noted in FinCEN data.
These kiosks, numbering about 31,000 and commonly found in gas stations and convenience stores, enable scammers to exploit a key vulnerability: the irreversible nature of cryptocurrency transactions. Fraudsters often contact victims via phone, posing as tech support or government officials, and instruct them to deposit cash at a nearby ATM. The machine converts the cash to bitcoin, which the victim then sends to the scammer's wallet. Unlike traditional banking, this process evades chargeback protections, making recovery nearly impossible.
The financial toll hits older demographics hardest. FBI statistics show individuals over 60 suffer a significant portion of the losses, targeted by tactics like impersonation scams that play on urgency and the kiosks' easy accessibility.
In response, agencies such as California's Department of Financial Protection and Innovation (DFPI) have ramped up efforts. They recently released a 'Protect Yourself' framework to combat the issue. 'No legitimate organization will ever ask you to deposit cash into a crypto ATM to resolve an issue or protect your money. If someone makes this request, it’s a scam,' the DFPI warned.
While public education continues, policymakers are pushing for tougher measures. For instance, Australia has enacted laws imposing daily transaction limits and curbing kiosk expansion. Industry experts see such regulations as essential to curb the fraud's growth.
