Loading article…
Crypto scams cost users $2 bn in 2023 and $1.4 bn H1 2024; ATM fraud up 1,000% since 2020. See the loss figures and upcoming ATM bans.
In 2023 crypto users lost close to $2 billion to scams, rug pulls and hacks, and the first half of 2024 added another $1.4 billion — a stark reminder that fraud remains the sector’s biggest drain on capital [1].
| At a glance | |
|---|---|
| 2023 loss | $2 bn |
| H1 2024 loss | $1.4 bn |
| ATM fraud rise (2020‑2023) | 1,000 % |
| 2025 ATM loss | $388 m (↑58 % YoY) |
The combined $3.4 bn lost in just 18 months underscores how scammers exploit the anonymity and decentralisation of digital assets. The FTC report highlights a 1,000 % jump in money siphoned through cryptocurrency ATMs between 2020 and 2023, with $388 million reported lost in 2025 alone—a 58 % increase over the prior year [2]. Older adults are especially vulnerable; victims over 60 are more than three times as likely to report an ATM‑related loss, with an average hit of $10,000 per incident.
State‑level actions are beginning to curb the ATM threat. Massachusetts sued Bitcoin Depot for enabling scams, alleging that over 50 % of its ATM transactions from August 2023 to January 2025 were linked to fraudulent activity. Indiana became the first state to outright ban cryptocurrency ATMs in March 2026, followed by Tennessee (effective July 1 2026) and Minnesota (effective August 1 2026) [2]. Other states—South Dakota, Arizona, Colorado, Arkansas, Virginia—have imposed restrictions, signaling a growing regulatory focus on this payment channel.
The surge in both traditional crypto scams and ATM‑specific fraud shows that while the technology evolves, the incentive for illicit actors remains unchanged. Ongoing regulatory actions may curb the most egregious abuses, but the underlying risk of loss continues to loom for users across the ecosystem.
Coverage is mostly measured — 108 of 110 reports stay neutral.
Every Monday — the token unlocks, Fed dates & catalysts set to move crypto and markets this week. So you’re never blindsided.
Free · 3-min read · one-click unsubscribe
AI-assisted synthesis by the TrendWatcher Editorial Desk · sourced from 2 outlets · Jul 11, 2026 · How we report
A cryptocurrency scam is a fraudulent scheme designed to trick individuals or organizations into relinquishing digital assets, often by mimicking legitimate crypto services.
Blockchain transactions are pseudonymous and irreversible, making it difficult to trace perpetrators and recover stolen assets.
Scammers artificially raise a token's price through false statements or coordinated buying, then sell their holdings at the inflated price, causing the price to crash.
Cryptojacking involves secretly installing mining software on a victim's device, using its resources to mine cryptocurrency without the owner's knowledge.
Yes, historically "crypto" has described hidden Calvinist beliefs in Lutheran contexts, known as Crypto-Calvinism, unrelated to modern cryptocurrency scams.