Crypto ATMs Become Prime Target for Scammers, $388M in Losses in 2025

Crypto ATMs have become a prime target for scammers who trick unsuspecting consumers into depositing cash, which is then converted to cryptocurrency and laundered through various channels. According to Elliptic, these machines provide a straightforward way for people to convert physical cash into digital assets, but they also facilitate fraud.

The scam typically involves a criminal contacting the target by phone or email while posing as a government official, bank fraud specialist, utility representative, or relative. The caller creates urgency and directs the victim to withdraw cash and insert it into a specific crypto ATM using a QR code provided by the scammer.

In 2025, losses linked to crypto ATM fraud exceeded $388 million, marking a 58 percent rise from the previous year, according to the FBI's Internet Crime Complaint Center. The financial toll is substantial and growing, with older adults accounting for a disproportionate share of the victims.

Banks can take protective measures by training staff to watch for red flags, such as customers who rarely withdraw large sums or provide vague explanations involving government agencies or crypto machines. Clear escalation protocols help staff decide when to approve, delay, or refer transactions.