More people are losing money to crypto ATM scams, with Americans reporting $114 million in losses to this type of fraud in 2023 (Fletcher, 2024). What are crypto ATMs and how can you prevent being scammed into sending money using them?

What is a crypto ATM scam?

A crypto ATM scam is a type of fraud that occurs when a scammer baits a victim to deposit money into a crypto ATM. The victim converts the cash to cryptocurrency and deposits the cryptocurrency into the fraudster’s Bitcoin wallet.  

What is a crypto ATM and what does it do?

A crypto ATM functions like a regular bank ATM, but it deals in cryptocurrency. Instead of accessing a person’s bank account, a crypto ATM accesses a person’s Bitcoin wallet. Using a crypto ATM, a person can send and receive virtual currency (Coinbase).

Do crypto ATMs accept physical dollars?

Users can deposit physical cash into crypto ATMs in exchange for cryptocurrency. After depositing the cash, the cryptocurrency is deposited into a Bitcoin wallet (Coinbase). Fraudsters give their Bitcoin wallet information to victims to deposit their cash.

How do people get scammed through crypto ATMs?

Scammers lure their victims to deposit cash into a crypto ATM and then deposit the cryptocurrency into the scammer’s Bitcoin wallet (State of Connecticut).

What is the difference between a crypto ATM and BTM?

A crypto ATM (automated teller machine) is also referred to as a BTM (bitcoin teller machine).

Are there any signs to detect this kind of fraud?

Often times, there are early signs of fraud. For example, fraudsters may ask their victims to withdraw large amounts of money from the bank and direct their victims not to tell the bank how they plan to use the cash. If you are directed make an investment or transaction in secrecy, especially using a large amount of cash, it is a scam.

How do crypto ATM scammers lure their victims into scams?

While the tactics vary, scammers create a sense of urgency and pressure their victims to deposit money into a crypto ATM. Some of the common scam tactics include:

• Government impersonation scams: Scammers tell victims that they owe the government money and the victim must pay the debt urgently to avoid a penalty (Federal Trade Comission, 2024). In these cases, the fraudster tells the victim that the government accepts payments for fines via crypto ATMs and directs the victim to deposit the amount into the fraudster’s Bitcoin wallet (Harris, 2025).
• Romance scams: Scammers befriend their victims through social media and dating sites. After gaining the victim’s trust, the scammer asks the victim for money to help deal with an emergency or legal battle (State of Connecticut).
• Pig butchering: Similar to romance scams, in a pig butchering scam, the bad actor builds a rapport with his victim over time. In these cases, the scammer usually tells the victim to message him through a third-party messaging app, such as WhatsApp. After trust is built, the scammer will tell his victim about an investment opportunity that, “can’t fail,” or is, “easy money.” Then the victim deposits cash into a crypto ATM and deposits the cryptocurrency into the scammer’s Bitcoin wallet (State of Connecticut).
• Utility scams: Some scammers threaten to shut the electricity, gas, or water off in a victim’s home if a payment is not made. If you are threatened about a utility payment, look up the utility company’s official number and call it (State of Connecticut).

References

Anderssen, E. (2025, February 27). Iowa Attorney General to sue crypto ATM companies. Retrieved from The Gazette: https://www.thegazette.com/news/iowa-attorney-general-to-sue-crypto-atm-companies/

Coinbase. (n.d.). Bitcoin ATMs: how to use them and how do they work? Retrieved from Coinbase. https://www.coinbase.com/learn/tips-and-tutorials/bitcoin-atms-how-to-use-them-and-how-do-they-work

Federal Trade Comission. (2024, September 24). New FTC Data Shows Massive Increase in Losses to Bitcoin ATM Scams. Retrieved from Federal Trade Commission: https://www.ftc.gov/news-events/news/press-releases/2024/09/new-ftc-data-shows-massive-increase-losses-bitcoin-atm-scams

Fletcher, E. (2024, September 3). Data Spotlight: Bitcoin ATMs: A payment portal for scammers. Retrieved from Federal Trade Commission: https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2024/09/bitcoin-atms-payment-portal-scammers

Harris, B. (2025, February 25). To fight scams, Senate bill would limit transactions at crypto ATMs. Retrieved from NBC News: https://www.nbcnews.com/news/us-news/senate-crypto-atm-bitcoin-scam-rcna193495

State of Connecticut. (n.d.). Avoid Scams Involving Virtual Currency Kiosks or “Bitcoin ATMs”. Retrieved from Connecticut's Official State Website: https://portal.ct.gov/-/media/DOB/Consumer/Joint-Consumer-Alert---Virtual-Currency-Kiosk.pdf?bcs-agent-scanner=53e104cb-b97a-514a-97e2-e610c9c9f75c