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The Federal Bureau of Investigation (FBI) has recently raised alarms about the increasing number of cryptocurrency scams, particularly those involving Bitcoin ATMs.
Crypto Requests Now Top Choice For Criminals
According to a report from ABC News, the latest statistics from the FBI indicate a “clear and constant rise” in fraudulent transactions connected to cryptocurrency kiosks, a trend the bureau notes is “not slowing down.”
In 2024, scammers perpetrated approximately $250 million in losses, which was more than double the amount reported in the previous year. By November 2025, that number had surged to $333.5 million.
There are over 45,000 Bitcoin ATMs across the US allowing users to convert cash into crypto and send it to wallets globally. However, once the money is sent, experts warn that recovery is nearly impossible, making the machines appealing tools for fraudsters.
“Requesting crypto is now the No. 1 preferred method of criminals,” stated Amy Nofziger, director of fraud victim support at AARP (formerly American Association of Retired Persons), in an October interview with ABC News. “It is a huge problem.”
Law enforcement has taken notice of the escalating fraud. In September, the attorney general’s office in Washington, D.C., filed a lawsuit against Athena Bitcoin, a major provider of Bitcoin ATMs in the country.
The suit alleges the company pocketed “hundreds of thousands of dollars in undisclosed fees on the backs of scam victims.” 93% of the transactions made through Athena’s machines in the district were allegedly linked to outright fraud, with victims often being older individuals, the median age being 71.
Athena Bitcoin has strongly refuted these allegations, stating that it implements robust safeguards against fraud, including clear instructions and consumer education. The company also remarked, “Just as a bank isn’t held responsible if someone willingly sends funds to someone else, Athena does not control users’ decisions.”
17 States Move To Regulate Or Ban Bitcoin ATMs
In response to the rising tide of scams, AARP has called for stricter regulations on Bitcoin ATMs, suggesting measures such as daily deposit caps to protect consumers.
At least 17 states have enacted legislation in recent years to regulate these Bitcoin ATM machines in the country, while some local governments have moved toward banning them entirely.
New Jersey state Senator Paul Moriarty, who sponsored a bill to prohibit Bitcoin ATMs in the state, expressed strong concerns regarding their impact.
“These machines are nothing more than conduits for fraud and criminal activity. Period,” he stated. “There’s no other use for them, because if you wanted to buy cryptocurrency you could buy it somewhere else for less.”
In defense of their operations, companies like Bitcoin Depot have stated that while scams do occur, they represent only a small portion of overall transactions.
At the time of writing, Bitcoin was trading at $88,613, marking a slight gain of 1.5% in the past 24 hours and 2% in the past seven days. However, it is still unable to surpass and consolidate above the key $90,000 mark, which is acting as the most important resistance wall in the near term.
Featured image from DALL-E, chart from TradingView.com
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