The Commodity Futures Trading Commission warned U.S. consumers on Aug. 26 about scammers using crypto ATMs, unfamiliar applications, gift cards and couriers to obtain payments that are difficult to reverse.
The warning follows FBI data showing more than 13,400 cryptocurrency kiosk complaints and over $388 million in reported losses during 2025. Complaints rose 23% from 2024, while reported losses increased 58%.
The FBI cautioned that actual losses may be higher because many victims do not report fraud. Its figures also include cases involving other payment channels, meaning the entire $388 million cannot be attributed solely to crypto ATM deposits.
#Crypto ATMs might look familiar, but they operate very differently than typical ATMs. Cash deposited into a #CryptoATM is converted into various forms of cryptocurrency, and the transfer is often immediate and irreversible. They also allow criminals to conceal their… pic.twitter.com/S31nzSYC9q
— CFTC (@CFTC) August 26, 2026
Crypto ATM scams rely on irreversible transfers
Unlike a bank ATM, a crypto kiosk converts deposited cash into cryptocurrency and sends it to a specified wallet. The transfer typically cannot be reversed after blockchain confirmation.
Scammers often provide a wallet address or QR code and remain on the telephone while the victim completes the transaction. They may direct victims to divide deposits among several machines or tell them how to respond if a kiosk operator, bank employee or family member asks questions.
The CFTC‘s advisory says criminals frequently impersonate government agencies, banks, investment firms, utility companies and technical-support providers. They create urgency by claiming a person’s identity, computer or savings account is in immediate danger.
“No government agency, legitimate financial institution, or reputable company will instruct you to move money using crypto ATMs, gift cards, or couriers,” the CFTC said.
Older Americans reported most kiosk losses
More than half of the FBIs cryptocurrency kiosk complaints involved people older than 50. Those victims reported losses exceeding $302 million.
The FBIs detailed data recorded approximately 13,460 kiosk-related complaints during 2025. People aged 60 or older filed 6,188 complaints and reported more than $257 million in losses.
Separate Federal Trade Commission research has shown that older victims often lose larger amounts to business and government impersonation schemes. The FTC found that cryptocurrency was identified in 33% of reports involving older adults who lost at least $10,000 to those scams during 2024.
Most cryptocurrency references in those reports mentioned Bitcoin ATMs, according to the FTCs analysis.
U.S. states are tightening crypto kiosk rules
Federal agencies have combined consumer warnings with more detailed compliance guidance. FinCEN instructed financial institutions and kiosk operators to monitor transactions for fraud and file suspicious activity reports when required.
The agency identified rapid transactions, repeat deposits, elderly customers receiving telephone instructions and transfers to wallets linked with fraud as possible warning signs in its 2025 notice.
States are also adopting different approaches. As crypto.news reported, Arizonas crypto ATM refund law returned $171,332 to 35 scam victims after introducing transaction limits, fraud warnings and reimbursement requirements.
In related coverage, Minnesotas crypto ATM ban took effect after nearly $1 million in reported losses. Other states have adopted transaction limits, mandatory receipts, customer-service requirements and holding periods instead of complete bans.
Victims should report transactions immediately
The CFTC advises consumers to end unsolicited conversations and independently contact the organization being impersonated. People should use telephone numbers or websites they locate themselves, not contact details supplied by the caller.
Suspected victims should preserve kiosk receipts, wallet addresses, QR codes, transaction hashes, communications and the machines physical location. These records can help investigators trace funds even when recovery is not guaranteed.
Reports can be submitted through the CFTC‘s complaint portal and the FBI’s IC3 website. Victims should also contact local law enforcement and the kiosk operator promptly.