The New York Times | Crypto kiosks look a lot like regular ATMs, but instead of dispensing money, they convert cash to virtual currencies. And they’re gaining a lot of attention for their use in scams.

Cryptocurrency is popular among scammers. It enables the quick transfer of money between accounts, exchanges, countries, and jurisdictions. And crypto ATMs are an easy way to collect money from victims.

According to the FBI, in 2024, fraud losses involving crypto ATMs totaled $246.7 million, with nearly 11,000 complaints reported to the FBI Internet Crime Complaint Center. By the end of July 2025, losses had already reached $240 million according to F.B.I. estimates.

California, Illinois, and more than a dozen other states have placed restrictions on ATMs, capping transaction volumes and fees. In California, for example, transactions are limited to $1,000 a person per day; fees are limited to $5 or 15% of the transaction amount, whichever is more.

Crypto ATMs = Convenient Collection

It’s easy for scammers to direct their victims to a crypto ATM at a nearby convenience store, gas station, grocery store, or cafe. With crypto ATMs in more than 28,000 locations, they outnumber Wells Fargo ATMs by two to one, according to The Times article.

Bitcoin Depot, which manages the largest crypto ATM network in North America, has 9,000 ATMs and has processed $3.3 billion in 4 million transactions, according to its investor presentation.

Many operators put scam warnings on the machines and ask users to attest that they are depositing money into their own accounts. The scammers are well aware of the warnings and simply instruct people to ignore the notices. They target people they think are less familiar with the technology, believing it’s a legitimate way to pay fines or transfer money. Victims often receive real-time instruction over the phone. The scammer talks them through the process — and tells them what to say to anyone who questions what they’re doing.

Psychological Manipulation Strategies

“I don’t even know what happened to me. The way you’re manipulated, it’s almost like you’re in some kind of vortex.” — Mary, Scam Victim

The scams range from toll fraud to romance scams, and people impersonating celebrities and law enforcement officers. The common element is manipulation. The bigger the scam, the more careful the psychological manipulation. The article profiles several victims, including:

Mary, a 71-year-old, met a man named Mike on a dating app. After two months of texting and talking, he asked to borrow money. In all, she transferred nearly $98,000 over 19 crypto ATM transactions. He disappeared along with her money.
Connie started receiving texts from a celebrity after joining an online fan group. After the impersonator told her he was in love with her, he asked for money so they could buy a house together. He collected about $300,000 through crypto ATMs. When she told her husband that she was leaving to be with the celebrity, her son informed her she’d been scammed.

What Crypto Operators Say

“As much as we try, criminals are very good at what they do, and they seem to generally be a step ahead.” — Sung Choi, COO of Coinme

Most companies operating the machines report that they prioritize customer safety and that scams are a small percentage of their transactions. At the same time, a company with more than 1,200 crypto ATMs said it called customers over 60 years old when they registered to warn them about scams: It stopped 80% of them from making a transaction.

Full article: How Fraudsters Use Cryptocurrency ATMs to Target Victims