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.
Crypto ATM Scams Rely on Irreversible Transfers
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. 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. This consumer protection warning follows the CFTC's broader enforcement actions, including the CFTC case against a US soldier over a Polymarket bet.
Older Americans Reported Most Kiosk Losses
More than half of the FBI's cryptocurrency kiosk complaints involved people older than 50. Those victims reported losses exceeding $302 million. The FBI's 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 FTC's analysis. This pattern of fraud targeting is similar to the broader crypto crime landscape tracked by blockchain analytics firms, as seen in the Chainalysis identification of 7,700 suspect accounts in a separate operation.
US 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. States are also adopting different approaches. Arizona's crypto ATM refund law returned $171,332 to 35 scam victims after introducing transaction limits, fraud warnings and reimbursement requirements. Minnesota's 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. The CFTC advises consumers to end unsolicited conversations and independently contact the organization being impersonated. Suspected victims should preserve kiosk receipts, wallet addresses, QR codes, transaction hashes, communications and the machine's physical location. Reports can be submitted through the CFTC's complaint portal and the FBI's IC3 website.
