The Commodity Futures Trading Commission issued a consumer advisory this week titled “Pause Before You Pay,” warning that scams involving cryptocurrency ATMs produced more than $388 million in reported losses across the United States during 2025. The figure represents a 58 percent increase from the prior year and stems from more than 13,400 complaints filed with the FBI.

Crypto ATMs convert physical cash into digital assets that are transferred almost immediately to a designated wallet. Once the blockchain confirms the transaction, the funds generally cannot be recovered. The machines also allow recipients to remain anonymous, a feature that makes them attractive to criminals.

How the Scams Unfold

Fraudsters typically contact victims by phone, text or email while posing as representatives of government agencies, banks, investment firms, utility companies or technical-support services. They create a sense of urgency by claiming an account is compromised, identity theft is underway or a payment is required to avoid penalties. Victims are then instructed to withdraw cash, locate a nearby cryptocurrency kiosk and scan a QR code or enter a wallet address provided by the caller. In some cases, scammers stay on the line and coach the victim through the process or direct deposits across multiple machines.

The agency stressed that any request to complete a payment through a public crypto terminal should be treated as a strong indicator of fraud. Officials also noted that the reported totals may understate the true scale because many victims never file complaints, and some cases involve additional payment methods beyond kiosks.

Older Adults Bear the Brunt of Losses

More than half of the 2025 kiosk-related complaints involved people older than 50, who accounted for over $302 million of the total losses. Individuals aged 60 and above filed roughly 6,188 complaints and reported more than $257 million in damages. Median losses in individual cases often approached $10,000. Separate research from the Federal Trade Commission has shown that older adults who fall victim to impersonation schemes frequently lose larger sums, with cryptocurrency ATMs appearing in a significant share of those reports.

Industry Contraction and State Responses

The cryptocurrency ATM sector has faced mounting pressure. In May 2026 the largest U.S. operator, Bitcoin Depot, filed for Chapter 11 bankruptcy and removed nearly 9,700 machines from service after revenue declined following stricter identity-verification rules. Global machine counts, which had approached 39,000 earlier in the year, fell sharply; one July period alone saw more than 10,800 units taken offline, the majority in the United States.

Several states have enacted their own measures. Indiana became the first to ban the machines outright. Minnesota ordered operators to remove all terminals from public locations by the end of the year. Hawaii will prohibit cash deposits into crypto ATMs beginning October 1. Delaware, New Jersey, Tennessee, Vermont and Georgia have imposed transaction limits, fee caps or other restrictions. Arizona has taken a different approach, introducing daily caps and a refund mechanism that has already returned more than $171,000 to dozens of victims.

Federal guidance has also tightened. The Financial Crimes Enforcement Network has directed kiosk operators and financial institutions to monitor for red flags such as rapid successive deposits, elderly customers receiving telephone instructions, and transfers to wallets previously linked to fraud, and to file suspicious-activity reports when appropriate.

Advice for Consumers

The CFTC recommends ending any unsolicited conversation that involves a request to use a crypto ATM, then independently verifying the claim by contacting the purported organization through publicly listed telephone numbers or websites. Suspected victims should retain kiosk receipts, wallet addresses, QR codes, transaction hashes, communications and the physical location of the machine, then report the incident promptly to the CFTC complaint portal, the FBI’s Internet Crime Complaint Center, local law enforcement and the kiosk operator.

While the overall network of machines has contracted and regulatory scrutiny continues to increase, the agency’s message remains straightforward: any instruction to convert cash into cryptocurrency at a public terminal and send it onward should be viewed as a probable scam.