Bitcoin ATM scams
If anyone tells you to take cash to a Bitcoin ATM, it's a scam. Every time.
In a Bitcoin ATM scam, someone posing as your bank, the government, the police or tech support convinces you that your money is in danger, then tells you to withdraw cash and feed it into a crypto kiosk, scanning a QR code they send you. The QR code is their wallet address. The machine works as designed, so the money arrives instantly with the scammer and can't be reversed.
Legitimate support will never ask for your seed phrase (recovery phrase) or private key. Not an exchange, a wallet maker, a lawyer, the police or the FBI. Anyone who asks for it, or asks you to type it into a website, is trying to steal from you.
How big the problem is
- 2025: the FBI's IC3 received 13,460 complaints involving crypto ATMs or kiosks, with $389 million in losses, up 58% from 2024.
- 2024: 10,956 complaints and about $246.7 million in losses, a 99% rise in complaints from 2023, figures the Treasury's FinCEN repeated when it warned banks about kiosks on August 4, 2025.
- The FTC reported in September 2024 that Bitcoin ATM fraud losses rose nearly tenfold from 2020 to over $110 million in 2023, with more than $65 million lost in the first half of 2024. People 60 and over were more than three times as likely as younger adults to report losing money this way, and the median loss was $10,000.
How the scam goes, step by step
- The scare. A pop-up says your computer is infected, or a call, text or email from "your bank's fraud department," "Amazon," "the Social Security Administration" or "the sheriff's office" says your account is hacked, your identity was used in a crime, or you owe a fine.
- The handoff. You're transferred to a "supervisor" or "federal agent" who sounds calm and official, often with your real details from data leaks.
- The plan. To "protect" your money, you must withdraw cash and move it to a "safe" government account. You're told to stay on the phone and not to tell the bank teller the real reason.
- The kiosk. They direct you to a nearby crypto ATM at a gas station or convenience store, send you a QR code, and coach you through inserting cash.
- More. They often come back for a second or third deposit, sometimes "to complete the protection."
Variations include romance and investment scams that use kiosks to collect deposits, and "you missed jury duty" calls. If you want to understand how the machines themselves work and what they charge, see our Bitcoin ATM guide.
Warning signs
- Anyone, for any reason, telling you to pay with or "protect" money using a Bitcoin ATM. No bank, government agency, police force or utility does this.
- Being kept on the phone while you drive to the bank and the kiosk.
- Being told to lie to bank staff or keep it secret from family.
- A QR code sent to you by someone else to scan at the machine.
- Threats of arrest, frozen accounts or fines if you don't act today.
Older relatives are targeted most. Agree a simple family rule now: "No one we know will ever ask you to use a Bitcoin ATM. If anyone does, hang up and call me." Several states, including California, now cap how much one customer can put into a kiosk per day, but the limits don't prevent a first loss.
If it happened to you
- Hang up and stop depositing. Call your bank using the number on your card, not one the caller gave you.
- Contact the kiosk operator immediately using the phone number on the machine or your receipt. Give them the transaction ID and wallet address from the receipt; some operators can flag or block the address for future victims.
- Keep the receipt. It has the destination address and transaction ID investigators need.
- Write everything down before anything gets deleted: wallet addresses, transaction IDs (hashes), website addresses, usernames, phone numbers, screenshots of chats, dates and amounts.
- Report it to the FBI at ic3.gov and the FTC at reportfraud.ftc.gov. Reports are free. If funds land at a regulated exchange, law enforcement can sometimes freeze them, and speed matters. A local police report gives you a reference number for your bank or insurer.
- Contact the exchange you sent from, and the receiving exchange if the blockchain shows one, through its official website or app (never a number or link from a search ad or a stranger). Ask them to flag the addresses and the transactions.
- Expect a second scam. Victims are targeted again by fake "recovery" firms, fake lawyers and fake FBI agents. Real law enforcement never charges a fee. Read crypto recovery scams.
Need the steps in order? Use the emergency checklist for a compromised wallet or account.
Frequently asked questions
Are Bitcoin ATMs themselves a scam?
No. They're a legitimate, if expensive, way to buy crypto with cash. The problem is that scammers use them to collect money instantly and irreversibly.
Can a Bitcoin ATM transaction be reversed?
Generally no. Once the crypto is sent to the scammer's address, neither the machine operator nor your bank can pull it back. Report quickly anyway, in case funds can be frozen downstream.
Would the police or FBI ever ask me to use a Bitcoin ATM?
Never. No law enforcement or government agency accepts payments or 'protects' money through crypto kiosks.
My bank teller asked why I'm withdrawing so much cash. What should I say?
The truth. Tellers are trained to spot these scams. If someone told you to lie to the bank, that alone proves it's a scam.
Where to next
Sources
- FBI IC3 2025 Internet Crime Report (published April 2026)
- FinCEN Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments (FinCEN, August 4, 2025)
- New FTC data shows massive increase in losses to Bitcoin ATM scams (FTC, September 3, 2024)
- What to know about cryptocurrency and scams (FTC)
Written for beginners and checked against the sources listed. Last reviewed November 5, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.