CFTC warns crypto ATM scams caused $388 million in losses

The Commodity Futures Trading Commission (CFTC) issued a consumer alert on August 26, warning that scammers are exploiting cryptocurrency ATMs, gift‑card schemes and courier services to obtain payments that are difficult or impossible to reverse.

Scale of the problem

FBI data for 2025 show more than 13,460 complaints related to crypto kiosks and reported losses exceeding $388 million. Compared with 2024, the number of complaints rose 23 % and reported losses jumped 58 %.

Who is being targeted

Older adults are disproportionately affected. More than half of the kiosk complaints involved people over age 50, accounting for $302 million of the losses. Victims aged 60 or older filed 6,188 complaints and reported over $257 million in losses.

How the scams work

Scammers provide a wallet address or QR code, stay on the phone while the victim completes the transaction, and often direct victims to split deposits across multiple machines. They impersonate government agencies, banks, utility companies or technical‑support providers and create urgency by claiming an immediate threat to the victim’s identity, computer or savings.

Why crypto ATM transfers are risky

• Transfers are immediate and become irreversible once confirmed on the blockchain.
• Unlike bank ATMs, crypto kiosks convert cash to cryptocurrency and send it directly to the supplied wallet.
• Once the transaction is confirmed, it is difficult to trace or recover the funds.

Regulatory response

Federal agencies have combined consumer warnings with compliance guidance. FinCEN instructed financial institutions and kiosk operators to monitor for rapid or repeat transactions, especially those involving elderly customers or wallets linked to fraud, and to file suspicious activity reports.

Several states have taken action. Arizona’s refund law returned $171,332 to 35 victims after imposing transaction limits and fraud warnings. Minnesota enacted a ban on crypto ATMs after nearly $1 million in reported losses. Other states are using transaction caps, mandatory receipts, customer‑service requirements and holding periods.

What victims should do

The CFTC advises consumers to end unsolicited calls, verify the identity of any organization independently, and preserve all records—including receipts, wallet addresses, QR codes, transaction hashes and the kiosk’s location. Reports can be filed through the CFTC’s complaint portal, the FBI’s IC3 website, and local law enforcement.