CNN | Every day, scammers manipulate people into believing they need to immediately pay legal fees, resolve debts, or protect their money from hackers. And every day, the scammers offer a solution: crypto ATMs.

They direct their victims to withdraw cash from their banks and then go to a nearby convenience store or gas station to feed that money — bill by bill — into a crypto ATM. Once fed into the ATM, the money is immediately routed to the scammers’ accounts, typically in other countries. It’s almost surely gone.

The CNN article shares multiple real-world stories of victim experiences.

Americans lost around $240 million to crypto ATM scams in the first six months of 2025, about double the pace of similar scams last year. (FBI)

Local police are aware but can do little to stop the scams. Despite public claims, the U.S. companies that own and operate crypto ATMs often fight law enforcement efforts to retrieve money and fail to refund money to victims. The Washington, DC, attorney general recently alleged that more than 90% of deposits in one company’s ATMs resulted from fraud.

Crypto ATM companies make money on each transaction. They often mark up the price of cryptocurrency by 20% to 30% or more. (CNN)

These same companies resist implementing safeguards such as transaction limits to protect consumers. They point to warnings posted on the machines and the terms of service agreements, but — as police point out — victims are under great duress. They’re often being directed exactly what to do by a scammer on the phone while they’re in the store. They’re told they’ll be arrested if they don’t comply, or a loved one will be in physical danger.

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

Transcript of Bodycam Footage During a Scam Incident

Sergeant Jake Tuzinski, from the Brooklyn Park Police Department in Minnesota, is part of the Operation Shamrock Crypto Coalition. CNN’s article includes footage from his encounter with a scammer.

Officer: Who are you? You don't sound like you're from Wells Fargo.

Scammer: Who are you? Who are you?

Officer: I told you, I'm Sergeant Tuzinski of the Brooklyn Park Police Department.

Scammer: Who are you to interfere in her business?

Officer: Who am I to interfere with your scam of an elderly woman?

Scammer: Yes, so who gave you the liberty to indulge in her business?

Officer: Yeah, well, that's what we do. We protect people. We protect people from terrible people like you who try to scam people.

Global Reach of Crypto ATM Scams

New Zealand, Australia, and the UK have all taken steps to limit or ban the devices due to their use in financial crimes.

Bitcoin Depot, CoinFlip, and Athena Bitcoin operate more 50% of crypto ATMs in the US, with more than 16,000 machines between them. (Coin ATM Radar)
Across the US, fraud losses involving crypto ATMs jumped from about $12 million in 2020 to $114 million in 2023, nearly a 10x increase. (US Federal Trade Commission)
In Maine, the state concluded that elderly consumers accounted for over 70% of money transmitted on Bitcoin Depot machines in the state over about two years. (CNN)
The Iowa attorney general sued Bitcoin Depot, alleging that scams amounted to “more than half of all money taken in” by the company in Iowa over about three years. In another suit, the AG alleged that the state’s top 20 CoinFlip users were scam victims. The companies have disputed the claims in court. (CNN)
In June, Australian authorities found that around 85% of the country’s crypto ATM users were scam victims or people coerced into money laundering. (AUSTRAC)

Full article: Crypto crime scene: How the companies behind crypto ATMs profit as Americans lose millions to scams