NASAA Sounds Alarm on Bitcoin ATM Risks: Fraud and Fees Soar
The North American Securities Administrators Association (NASAA) has issued an investor alert warning consumers to exercise caution when using Bitcoin ATMs. These machines, which allow users to exchange cash for cryptocurrency or withdraw cash in exchange for surrendering cryptocurrency, are becoming increasingly rare due to regulatory pressure and declining popularity.
According to NASAA, tens of thousands of BTMs operate across North America, often in high-traffic locations. However, once a transaction is executed, it can be nearly impossible to undo, making these machines highly attractive to fraudsters.
The report highlights the risks associated with using BTMs, including rampant fraud and excessive fees. For instance, a crypto kiosk company found that 74% of users made their first crypto transaction through a crypto kiosk. Additionally, the Federal Bureau of Investigation's 2025 Internet Crimes Report revealed that fraud involving crypto kiosks has increased exponentially to $390 million in the United States, a 58% increase in losses from 2024.