Bitcoin ATMs Targeted in Scams, Older Americans Most Vulnerable

Bitcoin ATMs can appear to be ordinary bank machines, but they work very differently. Once you insert cash and convert it to cryptocurrency, recovering that money can be extremely difficult.

The Federal Trade Commission has repeatedly warned consumers that legitimate government agencies and businesses will not tell them to withdraw money, convert it to cryptocurrency, or use a Bitcoin ATM to 'protect' their savings.

Older Americans are particularly vulnerable to these scams. In 2025, the FBI's Internet Crime Complaint Center reported receiving over 13,400 complaints involving cryptocurrency kiosks, with reported losses exceeding $388 million. More than half of those complaints involved people over 50, who collectively reported losses exceeding $302 million.

Scammers often start by impersonating a bank, government agency, or recognizable business and announcing an urgent problem that requires immediate action. They may instruct victims to withdraw cash and deposit it into a Bitcoin ATM, claiming this will protect their savings.