Crypto ATM Scams Cost Americans Millions

Crypto ATMs located in everyday retail locations have become a primary vehicle for fraud, with Americans losing roughly $240 million in the first six months of 2025 alone [1]. These machines, which convert cash into cryptocurrency, are frequently used by scammers who coerce victims into depositing funds, while operators profit from substantial transaction fees and markups [1].

Key takeaways

• Americans lost nearly $250 million to crypto ATM scams in 2024, and losses accelerated in the first half of 2025 [1][2].
• Companies like Bitcoin Depot often mark up cryptocurrency prices by 20% to 30%, keeping the difference as profit on top of service fees [1].
• Lawmakers and regulators allege that a majority of transactions at some kiosks are fraudulent, though operators dispute this claim [1].

High fees fuel a crime wave

In Prescott, Arizona, a single machine facilitated the theft of $118,000 from at least a dozen victims over a short period, with individuals losing amounts ranging from $3,000 to $25,000 [1]. Scammers typically convince victims they are facing legal trouble or a hacked bank account and direct them to feed cash into the kiosks, where the funds are instantly converted to digital currency and sent to the fraudster [1]. A review of a Bitcoin Depot receipt showed that while the company listed a small service fee, it sold Bitcoin at a 24% markup above market rate, resulting in a customer receiving significantly less value than the cash they deposited [1].