The anonymous and irreversible nature of cryptocurrency transactions has long been a magnet for fraudsters, and a new report from the Federal Bureau of Investigation highlights a particularly alarming trend. Losses from scams conducted through Bitcoin ATMs have skyrocketed, reaching hundreds of millions of dollars annually, with older Americans disproportionately affected. This surge in criminal activity is now drawing significant legal and regulatory scrutiny, putting cryptocurrency kiosk operators squarely in the crosshairs of law enforcement and consumer protection agencies.
FBI Data Shows Unabated Rise in Crypto ATM Scam Losses
According to the FBI, reported losses to scams involving cryptocurrency ATMs in the United States reached at least USD 333 million in 2025. This figure represents a "clear and constant rise" that the agency warns is "not slowing down." The trajectory of these losses paints a stark picture: they first surpassed USD 100 million in 2023 (USD 114 million), nearly doubled to USD 247 million in 2024, and continued their climb last year. The anonymity provided by cryptocurrencies and the near-impossibility of reversing transactions once completed make these platforms ideal for schemes where scammers pressure victims into making irreversible payments.
Reported U.S. Losses to Bitcoin ATM Scams:
- 2023: USD 114 million
- 2024: USD 247 million
- 2025 (Jan-Nov): USD 333.5 million (Source: FBI)
Authorities Take Legal Action Against ATM Operators
In response to the epidemic, authorities are increasingly targeting the companies that operate these kiosks. A prominent example is the lawsuit filed by the Washington, D.C. Attorney General against Athena Bitcoin, one of the nation's largest crypto ATM providers. The suit alleges the company is "pocketing hundreds of thousands of dollars in undisclosed fees on the backs of scam victims." It makes a damning claim: that 93% of transactions on Athena's machines in the district are the product of fraud, with victims having a median age of 71. This legal action signals a shift toward holding infrastructure providers accountable for the criminal activity facilitated by their networks.
Key Allegation in D.C. vs. Athena Bitcoin Lawsuit: The lawsuit claims 93% of transactions on Athena Bitcoin ATMs in Washington, D.C., are fraudulent, with a median victim age of 71.
How the Scams Work and Why They're Effective
The scams themselves often follow a familiar, high-pressure script. Fraudsters typically contact victims by phone, posing as government officials from agencies like the IRS or Social Security Administration, tech support agents from well-known companies, or even family members in desperate need of help. They create a false sense of urgency and secrecy, instructing the target to withdraw cash and deposit it into a Bitcoin ATM to resolve a fake debt, avoid arrest, or help a loved one. The machines' relative simplicity—allowing users to insert cash and send crypto directly to a provided wallet address—enables the rapid completion of the theft before the victim realizes they've been deceived.
Industry Defense and the Push for Stronger Regulation
Crypto ATM companies like Athena Bitcoin defend their practices, stating they maintain "strong safeguards against fraud, including transparent instructions, prominent warnings, and customer education." Athena has argued that "just as a bank isn’t held responsible if someone willingly sends funds to someone else, Athena does not control users’ decisions." However, consumer advocates and lawmakers counter that these warnings are often ineffective against real-time social engineering. In light of this, several states are now considering stricter regulations for crypto ATMs, including mandatory transaction caps, cooling-off periods, enhanced on-screen fraud warnings, and requirements for operators to refund demonstrable scam victims.
The Global Nature of the Problem and the Path Forward
The issue is not confined to the United States. Australian authorities have similarly reported that a significant portion of crypto ATM users are either scam victims or "money mules" coerced into laundering cash. As these kiosks become more ubiquitous—with over 45,000 now installed across the U.S.—the ease of access for criminals grows in tandem. While cryptocurrency holds legitimate uses, its complexity and novelty leave many, especially older adults, vulnerable. For now, experts and the FBI stress that public awareness is the first line of defense: no legitimate entity will ever demand payment via cryptocurrency, and any request to do so is almost certainly a scam.