The Rising Threat of Bitcoin ATM Fraud: A Growing Concern

Rise in Fraudulent Activities

In 2025, the FBI reported a significant increase in scams involving Bitcoin ATMs, with Americans losing over $333 million. This trend has been on the rise, with losses jumping from $250 million in 2024 to $333.5 million by November 2025. The FBI has noted a steady increase in these fraudulent activities, which show no signs of slowing down.

What Are Bitcoin ATMs?

Bitcoin ATMs, also known as cryptocurrency kiosks, allow users to exchange cash for digital currencies like Bitcoin. These machines have become popular, with companies like Bitcoin Depot Inc. operating many of them across North America. However, their popularity has also made them a target for scammers.

How the Scams Work

The scams typically involve tricksters convincing victims to deposit cash into these ATMs. The cash is then converted into cryptocurrency and sent directly to the scammer's digital wallet. Despite warnings from authorities, many people continue to fall victim to these schemes.

A Victim's Story

For instance, a 71-year-old woman in Westlake lost thousands of dollars to a scammer at a Bitcoin ATM in December 2025. This happened even after she was warned by the police and store staff. Such cases highlight the growing epidemic of cryptocurrency ATM fraud in the U.S.

Government Response

Sen. Cynthia Lummis (R-Wyo.) has also expressed concern over the rise in fraudulent activities involving these kiosks. She hopes to address the issue in a cryptocurrency market structure bill. The Federal Trade Commission has also provided guidelines on how to protect oneself from these scams.