The FBI logged more than 12,000 reports related to these devices from January through November 2025. The Bitcoin ATM network in the United States faces regulatory crossroads as federal data point to these devices as a major avenue for financial fraud. FinCEN data show that Bitcoin ATM-related fraud nearly doubled compared with the previous year, signaling a worsening trend.
These machines bridge the gap between cash and irreversible cryptocurrency, providing scammers with an easier path to move funds. Typically, scammers contact victims by phone and instruct them to deposit cash at a specific location. When the machine exchanges cash for Bitcoin, the victim ends up sending Bitcoin to the scammer’s wallet, a transfer that cannot be reversed and may bypass traditional chargeback protections. Victims skew older, with individuals aged 60 and over accounting for a substantial portion of losses. They are frequently exposed to scripts such as ‘tech support’, government impersonation, or ‘urgent issues’, exploiting the kiosk’s physical accessibility.
They are frequently exposed to scripts such as ‘tech support’, government impersonation, or ‘urgent issues’, exploiting the kiosk’s physical accessibility. The DFPI notes that no legitimate organization would request cash deposits to a crypto ATM for problem resolution or fund protection; if anyone asks, it is a scam. Policy makers are pivoting toward stronger regulation, finding education alone insufficient. Industry analysts view these safeguards, including daily transaction limits adopted in jurisdictions such as Australia, as a critical measure to slow the spread of ATM-based scams, while regulators pursue stricter disclosures, incident reporting, and device controls.
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