Crypto ATM Scams on the Rise
According to a new FBI report, US residents lost $388 million through cryptocurrency kiosks in 2025. The report, which is a supplement to the FBI's annual study of incidents reported to the Internet Crime Complaint Center (IC3), focuses on cryptocurrency ATMs that allow people to trade cash for cryptocurrency.
Criminals are ordering victims to send funds through the ATMs, and the use of cryptocurrency kiosks to perpetrate fraudulent activity against the US population is increasing. In most complaints, victims said they were given detailed information by fraudsters on how to take money from their bank account, where to find a cryptocurrency kiosk, and how to send the funds.
State-by-State Figures
The report contains staggering state-by-state figures. Topping the list is Texas, which had 1,179 reports and nearly $57 million in reported losses. Florida was next with 1,213 reports and $32.7 million in losses. California and Illinois both reported more than $20 million, while Arizona, New Jersey, North Carolina, Pennsylvania, Tennessee, Kentucky, Michigan, and Ohio all saw eight-figure losses.
The machines are typically found in commercial spaces like gas stations, grocery stores, and malls. The US Treasury Department warned last year that cryptocurrency ATMs are increasingly being used as part of cyber thefts where victims are pushed to give away thousands of dollars in fake investment schemes, tech support ruses, or romance scams — most of which are run by Chinese gangs from compounds in Southeast Asia.
Regulatory Action
Last month, Tennessee banned cryptocurrency ATMs, and Indiana outlawed the technology in March. A similar measure in Minnesota recently passed the Senate and is awaiting a House vote. Several recent investigations by state attorneys general have raised questions about the crypto kiosk industry and whether the ATMs serve a legitimate purpose.
A lawsuit filed in February by Massachusetts against Bitcoin Depot, the largest global kiosk provider, said that among hundreds of customers contacted by the attorney general's office, more than 80% had been the victims of scams. Iowa also recently sued Bitcoin Depot and another major provider, CoinFlip, for allegedly profiting from scams, and Washington, D.C. sued kiosk operator Athena in September, alleging that 93% of its transactions in the district were scam-related.
New Zealand banned all crypto ATMs last year, and Australia introduced legislation that would set spending limits and other rules designed to address fraud. The FBI received more than 13,400 complaints reporting the use of cryptocurrency kiosks, with losses over $388 million — a 23% increase in complaints and a 58% increase in losses from 2024. More than half of the complaints involved individuals over 50, with losses over $302 million.
Conclusion
The use of cryptocurrency kiosks to perpetrate fraudulent activity is a growing concern, with millions of dollars lost in 2025. Regulatory action is being taken to address the issue, but more needs to be done to protect consumers from these scams. As the use of cryptocurrency continues to grow, it is essential to be aware of the risks associated with cryptocurrency kiosks and to take steps to protect yourself from potential scams.
- Texas reported 1,179 complaints and $57 million in losses
- Florida reported 1,213 complaints and $32.7 million in losses
- California and Illinois both reported more than $20 million in losses
- Arizona, New Jersey, North Carolina, Pennsylvania, Tennessee, Kentucky, Michigan, and Ohio all saw eight-figure losses
Source: The Record