Bitcoin ATM Scams: How They Work & Who They Target

Bitcoin ATM scams are becoming a serious problem, and they’re not just affecting people who are new to crypto. These machines are showing up in more everyday places, like petrol stations, corner shops, and shopping centers. Scammers know this, and they’re using the machines to take people’s money fast.

It often starts with a phone call or message that feels urgent; someone sounds official and tells you to send money right away. You follow the steps at a crypto ATM, and just like that, the money is gone.

This article explains how the scams work, who’s being targeted, and how to stay safe.

Table of Contents Table of Contents

1. Key Takeaways
2. What Is a Bitcoin ATM & How Do Bitcoin ATMs Work?
3. Why Bitcoin ATM Machines Are Scammers' New Favorite Tool
4. Who’s Being Targeted by Crypto ATM Scams & How Much They’re Losing
5. The Main Types of Cryptocurrency Machine Scams in 2024
6. What States & Cities Are Doing To Stop Crypto ATM Fraud
7. Tips to Avoid Getting Scammed at a BTC Machine
8. The Bottom Line
9. FAQs
10. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. What Is a Bitcoin ATM & How Do Bitcoin ATMs Work?
3. Why Bitcoin ATM Machines Are Scammers' New Favorite Tool
Show Full Guide
4. Who’s Being Targeted by Crypto ATM Scams & How Much They’re Losing
5. The Main Types of Cryptocurrency Machine Scams in 2024
6. What States & Cities Are Doing To Stop Crypto ATM Fraud
7. Tips to Avoid Getting Scammed at a BTC Machine
8. The Bottom Line
9. FAQs
10. References

What Is a Bitcoin ATM & How Do Bitcoin ATMs Work?

A Bitcoin ATM machine is a kiosk that lets you buy or sell cryptocurrency using cash. It looks similar to a regular cash machine, but instead of connecting to a bank, it links to a crypto exchange.

These machines are found in convenience stores, gas stations, and shopping centers. You don’t need a bank card or an online account. Most of the time, you just need:

To buy Bitcoin (BTC), you choose how much you want, insert the cash, and scan your wallet’s code. The machine then sends the crypto directly to your wallet. Some machines also let you sell Bitcoin and take out money, but not all offer this option.

The whole process is fast and fairly easy, which is why many people use crypto ATMs when they’re starting out. But that same simplicity is what makes them attractive to scammers.

Because of this, Bitcoin kiosk scams have been rising quickly, especially when people don’t fully understand how the machines work.

Why Bitcoin ATM Machines Are Scammers’ New Favorite Tool

The Bitcoin ATM machine has made it very simple for people to turn cash into crypto, but this is what scammers might exploit.

Once money is sent using a crypto ATM, there’s no way to get it back. It works differently from bank transfers or credit card payments; there’s no middleman to stop or reverse the transaction. The moment the crypto is sent, it’s in someone else’s wallet, and that’s it.

For many people, this is the first time they’ve used cryptocurrency, and these machines look familiar and easy to use, which lowers people’s guard. That’s exactly what makes it dangerous.

The process feels normal, especially when the person at the other end is pretending to be someone official. Victims are often told there’s a serious problem they need to fix right away, so they panic and follow instructions without stopping to think.

Scammers use Bitcoin ATMs because:

Who’s Being Targeted by Crypto ATM Scams & How Much They’re Losing

Older adults are losing the most money to crypto ATM scams.

Data from the Internet Crime Complaint Center shows that, in 2024, people aged 60 and over reported losing $107 million, nearly half of the $246.7 million total in crypto ATM fraud that year.

They are:

• Three times more likely than younger adults to report this type of scam
• Less familiar with crypto machines
• More likely to feel pressure when told to act fast

Scammers take advantage of this.

The scammer sounds confident, sometimes even friendly, and the victim, feeling rushed and unsure, does what they’re told.

Losses like these have grown fast over the past few years:

This feels less like a tech issue and more like a generational trap, with scammers picking people they think are easier to scare or confuse. The machines are easy to use, but they can also be misused by those with bad intentions.

Learning how to use a Bitcoin ATM in a safe way can help, but it’s not enough on its own. What’s needed is better education, stronger rules, and clearer warnings, especially for the people who are being hit the hardest.

The Main Types of Cryptocurrency Machine Scams in 2024

Scammers use different tricks to push people into sending money through a cryptocurrency ATM. Most of these scams create stress or fear, and the person on the other end often pretends to be someone you should trust.

Here are the most common crypto-ATM-related scams reported in 2024:

• Tech support scams: These caused the biggest losses, adding up to $107.4 million. Someone pretends to be from a tech company like Microsoft or Apple, saying that your account or device has been hacked and telling you to send money to fix it.
• Government impersonation: These led to $44.6 million in losses. The scammer claims they’re from the police, tax office, or another authority, and victims are told they’ll get into legal trouble unless they send money right away.
• Investment scams: Around $38.1 million was lost to fake investment offers. People are promised big returns and given instructions on how to use a crypto ATM to send their first payment.
• Extortion: In 4,189 cases, scammers threatened to release private or personal information unless the victim paid up, amounting to $5.6 million in losses.

Some scams now include fake voices created with AI tools. These calls sound real, which makes it easier for scammers to gain control by panicking their victims and pressuring them to act quickly, making these Bitcoin scams incredibly effective.

What States & Cities Are Doing To Stop Crypto ATM Fraud

As ATM scams continue to grow, more states and cities in the US are starting to take action. The goal is to make these machines safer and harder for scammers to use.

Several states passed new laws in 2024 and 2025:

• Illinois now requires every transaction to come with a receipt that shows where the money was sent. This helps police track scam activity.
• Vermont introduced daily limits, so people can’t send large amounts of money through crypto ATMs all at once.
• Arizona now allows refunds for people who were tricked into using a crypto ATM.
• Nebraska set up a licensing system for crypto ATM operators. This means not just anyone can run a machine.
• Rhode Island made it mandatory to show a clear warning at each kiosk, letting users know that crypto transactions can’t be reversed.
• Oklahoma added new protections, too.

Some cities are going even further. In Spokane, Washington, city officials voted to ban all crypto ATMs. Other cities, like Forest Lake in Minnesota, are also exploring their own regulations.

Tips to Avoid Getting Scammed at a BTC Machine

Many scams involving a BTC machine start with pressure. The scammer makes the situation feel urgent, saying you need to act right away, which is a common tactic. When people feel rushed, they’re more likely to make mistakes.

It’s also important to know that crypto transfers can’t be reversed. Once the money is sent, there’s no way to get it back.

Learning how to use a Bitcoin ATM safely is a good first step. But the most important thing is to stay calm and take a moment before acting. That alone can help you avoid falling into a scam.

The Bottom Line

Bitcoin ATM scams are becoming more common, especially among older adults. These machines are simple to use, which makes them helpful, but also risky.

A cryptocurrency ATM can be safe if you take the right steps. Always check who you’re sending money to, don’t let anyone rush you, and if something feels off, pause and ask someone you trust. A few seconds of caution can save you from losing everything.

FAQs