Crypto ATM Scams Are On The Rise In The United States

You might have seen these in your local gas stations.

A new investigative report by CNN has revealed, Bitcoin ATM companies have been profiting off of scams and high transaction fees.

In the report, it was revealed, scammers have reached out to potential victims and have falsely told them to deposit money into the Bitcoin ATM to cover an urgent bill.

The scammer would then tell the victim to send Bitcoin to their wallets.

CNN reported on the rise of Crypt ATM scams exclusively:

The victims were led to the Arizona convenience store by an increasingly familiar scam: Crooks had tricked them into believing they were in legal trouble, their bank accounts were hacked or that they had to pay off debts. To fix the “crisis,” they were told to feed cash into the crypto ATM – where it was promptly routed to scammers’ accounts.

This crime wave was no secret. Local police knew all about it.

But they were all but powerless to stop the scammers.

And what truly frustrates investigators is that US companies, which own and operate crypto ATMs around the country, profit from the fraud while doing too little to help stop it. Prosecutors have likened the machines to a “getaway vehicle” exploited by thieves to quickly escape with the money.

A CNN investigation, which included a review of more than 700 criminal cases and complaints, has found that crypto ATM companies make money by often marking up the price of cryptocurrency by 20% to 30% or more on transactions, including the illicit ones. Despite public claims, they often fail to refund money to victims and aggressively fight police to claw back scam money seized from machines.

The companies have also largely failed to adopt measures that could stifle scammers, such as strict transaction limits, and have heavily lobbied state legislatures to neuter laws that would force them to better protect victims. Some states have passed or proposed laws that closely match model legislation with fewer protections pushed by industry lobbyists.

“These machines are nothing more than conduits for fraud and criminal activity. Period,” said New Jersey state Sen. Paul Moriarty, who sponsored a bill in his state to outright ban the machines. “There’s no other use for them, because if you wanted to buy cryptocurrency you could buy it somewhere else for less.”

The story is increasingly common around the nation. Americans, often retirees, lost around $240 million to crypto ATM scams in the first six months of this year, according to the FBI – about double the pace of similar scams last year.

While it looks as though Bitcoin Depot only charges a $3 service fee, the company is selling Bitcoin at 24 percent higher than the market rate on this transaction.

On this $4,300 transaction, Bitcoin Depot would have issued the customer around $3,450 worth of Bitcoin, pocketing around $850 on top of the $3 service fee.

In interviews with CNN, four former crypto ATM company employees said that companies are not doing enough to prevent fraud or help victims.

One former senior staffer at a crypto ATM company who spoke anonymously for fear of reprisal described the general philosophy at his former employer as, “it’s not my problem if someone is stupid and gets scammed.”

Another former staffer said, “If there was a way to prevent 100% of scams there is no way this industry would survive.”

Crypto ATM companies strongly disputed allegations they profit from scams and listed various efforts to protect consumers, such as multiple warnings about scams that are shown whenever their machines are used.

Like the other major crypto ATM operators who responded to CNN, Bitcoin Depot pointed out that users agree to terms of service before transferring money, including a promise to only send money to their own Bitcoin accounts and an acknowledgement of company fees.

This lady was almost scammed:

An 85-year-old was moments from losing $40,000 —until a bystander called 911.

All of it captured on police body camera.

Our @ABC News investigation into the criminal networks behind these scams and their new tool…Bitcoin ATMs.

From @GMA, W/ @lcbruggeman & @Santucci pic.twitter.com/TWdoO5CxGr

— Jay O'Brien (@jayobtv) October 9, 2025

The DFPI released a warning to potential victims of the scam:

These machines, commonly found in convenience stores and gas stations, allow users to purchase digital assets using cash or debit cards. However, scammers manipulate victims into using these ATMs to transfer funds directly into the scammers’ crypto wallets.

Scammers typically reach out via unsolicited phone calls, texts, or emails, pretending to be from a legitimate organization, a romantic interest, or a distant relative.

They create a sense of urgency by inventing emergencies—such as a frozen bank account or a family member in trouble—and claim immediate action is required.

The scammer instructs the victim to go to a specific crypto ATM and deposit funds. They often stay on the phone during the transaction, guiding the victim step-by-step. These ATMs usually display warnings about scams and note that transactions are non-reversible. Note: Under the state’s Digital Financial Assets Law (DFAL), kiosk operators are prohibited from accepting more than $1,000 per person, per day. If a kiosk accepts more than that, its operator is in violation of the law.

Scammers may send a QR code to the consumer which, when scanned at the crypto ATM, directs the purchased digital assets straight into the scammer’s wallet.

Payments through these crypto ATMs or kiosks are quick and immediate. Transactions cannot be reversed and are often untraceable.

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