How do crypto ATM scams work?

Crypto ATM scams use a real machine for a fake reason. A scammer convinces someone that their money is in danger or that they owe a debt, then walks them through withdrawing cash, feeding it into a bitcoin ATM and scanning a QR code. That code holds the scammer's wallet address, so the cash turns into crypto that lands directly with the criminal. For how the machines work normally, see our guide on how bitcoin ATMs work.

How does a typical bitcoin ATM scam play out?

The FTC describes a common script. A call, text or computer pop-up claims there is fraud on your account, often using the name of a company like Microsoft or Apple, or a government agency. The scammer then raises the stakes, saying your savings are at risk or that you are linked to a crime. You are told to take out cash and deposit it at a nearby machine, sometimes called a "safety locker." Finally the scammer sends a QR code to scan at the kiosk.

About 86% of bitcoin ATM loss reports in the first half of 2024 came from business impersonation, government impersonation or tech support scams, according to the FTC. Once the coins are sent, they generally cannot be pulled back, as explained in can cryptocurrency be traced.

How big are crypto ATM scam losses?

The FBI's Internet Crime Complaint Center counted more than 13,400 complaints involving crypto kiosks in 2025, with losses over $388 million. Complaints rose 23% and losses 58% from 2024. More than half came from people over 50. FinCEN, the Treasury's anti-money laundering bureau, issued a notice in August 2025 urging banks to watch for kiosk-linked scam payments, noting that some of these scams hit older adults hardest.

What is the Crypto ATM Fraud Prevention Act?

The Crypto ATM Fraud Prevention Act is a federal bill from Senator Dick Durbin. As described in his May 2026 release, it would require operators to show scam warnings, register kiosk locations with FinCEN, and limit new customers to $2,000 a day and $10,000 over their first 14 days. It would also require full refunds for scams reported within 30 days. It is a proposal, not current federal law, so protections depend on where you live.

What fees do crypto ATMs charge?

Kiosk costs are often a fee plus a markup over exchange prices. Rules vary by state. In California, since January 1, 2025, total charges per transaction cannot exceed the greater of $5 or 15% of the amount, and kiosks may not take more than $1,000 a day from one customer.

The FBI's message is simple: no real law enforcement or government official will demand payment through a crypto kiosk. If you were targeted, report it at ic3.gov and ReportFraud.ftc.gov, and see what to do if you are scammed.