How Cryptocurrency ATM Scams Work
When Michigan resident Stacy Hazinski received a text that she'd been charged $114.02 through Apple Pay for something she didn't buy, she was annoyed.1 But annoyance quickly turned to panic when she called the number in the text message and the man who answered — supposedly from Apple — said her brand new tax refund, as well as the rest of the savings, were in the process of being transferred to an online poker company.
The caller instructed Hazinski to withdraw cash from her credit union — using a script he provided to avoid suspicion with the teller — and deposit the cash into a cryptocurrency ATM located in a nearby convenience store. Bitcoin, he told her, was secure and would protect her money from scammers.
"I believed him," she told The Detroit Free Press, "I was standing there at least a half hour putting money in that machine."
That was the last time Hazinski saw $17,500 of her hard-earned money. It sounds like an unbelievable scheme, but FBI data confirms how widespread and effective it is. The agency's Internet Crime Complaint Center logged nearly 11,000 reports of the fraud in 2024 — a 99% increase from 2023.2 Losses from those reports totaled $246.7 million.
Here's what everyone needs to know about cryptocurrency ATM scams and how to avoid being ensnared by this costly crime.
What Are Cryptocurrency ATM Scams?
Many people's first question might be, "What even is a cryptocurrency ATM?" These relatively new devices are appearing in convenience stores and other public locations. According to one estimate, there are now 30,000 cryptocurrency ATMs in the U.S.3 Any fraud involving these devices is considered a cryptocurrency ATM scam.
Unlike a traditional ATM that dispenses cash from a user's bank account, cryptocurrency ATMs dispense cash to crypto holders who sell their digital currency in exchange for U.S. dollars.4 Some crypto ATMs, including those used in this type of scam, also receive cash deposits from users who want to buy cryptocurrency. They are sometimes known as "bitcoin ATMs," but some handle other forms of cryptocurrency besides bitcoin.
Cryptocurrency is digital currency. It's ideal for cybercriminals because it is decentralized, meaning no bank or other institution needs to facilitate the transactions, which are both irrevocable and fast.5 While a public, secure ledger of all crypto transactions exists, the FBI says law enforcement struggles to pursue criminal transactions in countries with less stringent laws around fraud — which is why so many cryptocurrency frauds originate overseas.
How Do Cryptocurrency ATM Scams Work?
A crypto ATM scam typically begins with an impersonation scam.6 The scammer usually calls the victim or sends a phishing email or smishing text to lure the victim into calling them. Once on the phone, the scammer claims to be from the government, a trusted business, or tech support for one of their devices. They will use an elaborate lie to convince the victim that the money in their bank or investment accounts is at imminent risk of being stolen, and they must act fast to protect it.
The FBI logged nearly 11,000 reports of cryptocurrency ATM fraud in 2024.
The "safe" place for it, the scammer claims, is a crypto wallet — the cryptocurrency version of an account. They typically tell the victim to give their bank teller a specific excuse for withdrawing the large amount of cash without raising suspicions (such as, "I need cash to pay a contractor," or "I'm buying a used car from a friend.") Once the victim has the cash in hand, the criminal gives them a fraudulent QR code to use when setting up their new wallet at the crypto ATM. The QR code, however, sends the deposit to the scammer's wallet instead.
How To Protect Yourself From Crypto Scams
While there are several things to watch for with a crypto ATM scam, there's one big piece of advice that can help prevent this and other scams connected to elaborate, fear-mongering stories:
- Never move your money to protect it.7 The FTC is extremely clear on this point. "Someone who says you have to move your money to protect it is a scammer. Period."
These steps will also help you avoid a crypto scam:6
- Never click on links or call phone numbers from unexpected senders. If you suspect the messages might be legitimate, go to the organization's website, find their contact information, and contact them directly. Don't trust caller ID either, as scammers can make it look like they're calling from a trusted number.8
- Slow down. No one thinks straight in a panic. Scammers rely on that, so they create a false sense of urgency.
- Consider any mention of a crypto ATM a huge red flag. Just like gift cards and wire transfers, any request to pay anyone in one of fraudsters' favorite currencies is suspicious.
What To Do If You Fall Victim to a Crypto ATM Scam
Crypto ATM scams are one of those emotionally painful frauds that victims feel ashamed of. When you recount the story back to friends, family, or the authorities, it does sound outrageous. However, in the moment of panic, many smart people are fooled by this scam. A relative of a technology educator in Wisconsin lost $9,500 to a crypto ATM scam.9
If you believe you're a victim of a crypto ATM scam, the FBI wants to hear about it.10 File a complaint with its Internet Crime Complaint Center, and follow the steps in our article, "What to Do if You Are a Victim of Fraud" to protect yourself from further financial harm.11
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Important disclosure information
Asset allocation and diversifications do not ensure against loss. This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
- Susan Tompor, "How crooks convinced her to put $17,500 into a bitcoin ATM to 'secure' her money," The Detroit Free Press, published April 17, 2025. Accessed November 5, 2025. Back
- Federal Bureau of Investigation, "Internet Crime Report 2024," FBI Internet Crime Complaint Center, published April 23, 2025. Accessed November 5, 2025. Back
- Coin ATM Radar, "Crypto ATM Distribution by Continents and Countries," accessed November 5, 2025. Back
- Miles Vaughn, "Your Bitcoin on Every Block: An Introduction to Cryptocurrency Kiosks," National Association of Attorneys General, published May 4, 2022. Accessed November 5, 2025. Back
- Federal Bureau of Investigation, "Cryptocurrency," accessed November 5, 2025. Back
- Federal Trade Commission, "New FTC Data Shows Massive Increase in Losses to Bitcoin ATM Scams," FTC Press Releases, published September 3, 2024. Accessed November 5, 2025. Back
- Jennifer Leach, "Never move your money to 'protect it.' That’s a scam," Federal Trade Commission Consumer Alerts, published March 5, 2024. Accessed November 5, 2025. Back
- State of Michigan, "Bitcoin ATMs – Frequent Source of Scams and Money Laundering," Michigan Attorney General Consumer Protection. Accessed November 5, 2025. Back
- Glenda Valdes, "Kenosha police detective warns of crypto ATM scam; local woman speaks out after relative loses thousands," WTMJ-TV Milwaukee, published May 20, 2025. Accessed November 5, 2025. Back
- Federal Bureau of Investigation, "FBI Guidance for Cryptocurrency Scam Victims," FBI Public Service Announcement, published August 24, 2023. Accessed November 5, 2025. Back
- FBI, "File a Complaint," Internet Crime Complaint Center. Accessed September 29, 2025. Back