Americans are losing millions of dollars to scammers exploiting the rapid spread of crypto ATMs, with companies behind these machines often profiting from a lack of oversight and consumer protections. Crypto ATMs, found in convenience stores, gas stations, and malls across the country, allow anyone to quickly purchase cryptocurrencies like Bitcoin with cash. Their convenience and apparent simplicity have made them attractive targets for fraudsters, especially as the number of machines has skyrocketed—growing from just over 4,000 in early 2020 to more than 37,000 in 2025.

The typical scam works like this: Fraudsters posing as tech support, government officials, or romantic interests convince victims, often older adults, to withdraw cash and deposit it into a crypto ATM. Victims are guided step-by-step on how to send cryptocurrency to the scammer’s wallet, with the transactions nearly impossible to reverse or trace once completed. Last year, reported losses in the U.S. reached nearly $250 million from nearly 11,000 complaints—numbers that continue to climb.

Scammers prefer crypto ATMs partly because regulation is inconsistent, and many operators fail to comply with basic anti-money laundering requirements. Some ATM operators don’t register as required, keep transaction limits high, or neglect to verify customer identities, making their machines highly vulnerable to abuse. Others profit from high transaction fees, sometimes up to 20%, collecting substantial revenue regardless of how their machines are used.

Despite rising losses, oversight remains patchy. While lawmakers have proposed stricter rules requiring registration, improved transparency, and customer protections such as transaction limits and fraud refunds, progress is slow. Meanwhile, scammers continue to exploit the most vulnerable, and companies supplying the machines benefit from every transaction—whether legitimate or fraudulent.

If you spot a crypto ATM, remember: these machines are rarely, if ever, involved in legitimate requests for payment from government agencies, tech companies, or banks. Anyone asking you to urgently deposit cash into a crypto ATM is almost certainly trying to scam you. Increased awareness, regulatory reforms, and better consumer education are essential to help curb these losses and hold both scammers and complicit operators accountable.