Crypto ATM scams: why no real agency asks you to pay at a bitcoin kiosk

A crypto ATM, also called a bitcoin ATM or crypto kiosk, turns cash into cryptocurrency in minutes. Scammers have turned these machines into a favorite cash-out tool: they persuade people to withdraw savings and feed them into a kiosk, and the money lands in the scammer's wallet.

How big the problem is

The FBI's 2025 kiosk data shows more than 13,400 complaints involving crypto kiosks, with losses over $388 million. That is a 23% rise in complaints and a 58% rise in losses from 2024. People over 50 filed more than half of those complaints and reported more than $302 million of the losses.

The FTC saw the same trend earlier. Its 2024 data spotlight found reported losses at bitcoin ATMs grew nearly tenfold from 2020 to 2023. In the first half of 2024 the median reported loss was $10,000, and people 60 and over were more than three times as likely as younger adults to report a loss using one.

How the scam works

1. A scary contact. A call, text or computer pop-up says your bank account was hacked, your identity was used in a crime, or you owe a fine. The caller may claim to be your bank, Microsoft or Apple, the FBI, the FTC or local police.
2. A “solution.” They say moving your money into crypto will protect it, sometimes calling the kiosk a “safety locker” or “government vault.”
3. Step-by-step coaching. The FBI says scammers often walk victims through withdrawing cash from the bank, finding a specific kiosk, and inserting the money, frequently while staying on the phone.
4. A QR code. They text or email a QR code. When you scan it at the kiosk, your cash becomes crypto sent to their wallet.
5. More demands. Victims are often told to repeat the process at different machines or on different days.

Warning signs

• Someone you have never met tells you to withdraw cash and keep the reason secret from bank staff.
• You were sent a QR code to scan at a machine.
• A caller wants you to stay on the line while you drive to the bank or kiosk.
• You are told your money is at risk and must be moved today.
• The request involves a crime, warrant, fine or jury duty that you have never heard about from an official letter.

If you are a family member or bank employee, the FBI notes signs such as unexplained large cash withdrawals, confusion about why the cash is needed, and someone on the phone while using a kiosk.

State laws limiting crypto kiosks

States have responded with very different approaches. As of October 2026, examples include:

• California: Since January 1, 2024, kiosk operators cannot accept or dispense more than $1,000 per customer per day, according to the state's financial regulator.
• Indiana: House Enrolled Act 1116, signed in March 2026, bans operating virtual currency kiosks in the state and lets the attorney general act against violators.
• Minnesota: A 2026 law bans crypto kiosks starting August 1, 2026, replacing the state's earlier $2,000 daily limit for new customers. The Minnesota Department of Commerce cited losses that fall disproportionately on seniors.

Many other states have proposed or passed daily limits, fraud warnings and refund rules, and the rules change often. Check with your state financial regulator or attorney general for current requirements. Our laws and regulations section tracks the wider picture.

What to do if you deposited money

1. Stop. Do not make further deposits, even if the caller threatens you.
2. Keep your receipts. They show the kiosk location, amount, wallet address and transaction ID.
3. Call the kiosk operator immediately using the number on the machine or receipt, and ask whether the transaction can be stopped. Some state laws require refunds in certain fraud cases.
4. Report it to local police and at ic3.gov, including the transaction ID, receiving wallet address, kiosk location and any phone numbers or names the scammer used.
5. Warn your bank and ask it to flag your account against further large cash withdrawals.

For related schemes, read about impersonation scams or visit our security and scams hub.

Updated October 4, 2026 by The Crypto Guide editorial team. Educational content, not financial, legal or tax advice. Spot an error? Request a correction.