Crypto ATM Scams Surge in 2025 as Regulators Crack Down on 40,000 Bitcoin ATMs

As of December 2, 2025, crypto ATMs sit at the center of a rapidly escalating global fight over fraud, consumer protection, and how far regulators should go to police a booming cash‑to‑crypto industry.

In the U.S., a Clay County, Missouri jury‑duty scam has pushed local losses to $3 million. At the same time, Washington state regulators have just shut down a major crypto ATM operator over how it handled $8 million in customer funds. Globally, the number of machines is nudging toward 40,000, even as governments from Brussels to Canberra tighten the rules or push them out entirely. ^[1]

Against that backdrop, a new wave of reporting on December 1–2 — from KCUR, TechStock²/TS2, IBTimes UK, Blockchain Magazine and others — is turning crypto ATMs into one of 2025’s most contentious battlegrounds in consumer finance. ^[2]

Clay County: $3 Million Lost to a “Jury Duty” Bitcoin ATM Scam

Clay County, Missouri has become the latest symbol of how traditional phone scams have fused with new payment rails.

Local prosecutors say that in just two years, 156 residents have collectively lost about $3 million after being coerced into feeding cash into Bitcoin ATMs — often under the threat of arrest for supposedly missing jury duty. ^[3]

Here’s how the scam typically unfolds:

Victims receive a call from someone pretending to be from the sheriff’s office or a court.
They’re told there is a warrant for their arrest because they allegedly skipped jury service or owe a fine.
To “avoid arrest,” they’re ordered to withdraw thousands of dollars in cash, not speak to bank tellers, and drive to a nearby Bitcoin ATM (often called a BTM).
At the machine, they scan a QR code the scammer sent and deposit the cash, converting it to Bitcoin that goes straight to the scammer’s wallet. ^[4]

In one recent case from October, a 67‑year‑old woman in Liberty was convinced to withdraw $14,000 in two rounds and send it through a Bitcoin kiosk while staying on the phone with the fraudster the entire time. ^[5]

Once the money is converted and transmitted, it’s almost impossible to get back:

Bitcoin transactions are fast and irreversible.
Wallet addresses don’t automatically reveal real‑world identities.
Scammers often quickly move funds through multiple wallets and overseas platforms. ^[6]

Clay County Prosecutor Zach Thompson says the county has not managed a single arrest in any of the 156 cases, underscoring how effectively crypto ATMs can shield scammers once cash crosses the kiosk. ^[7]

Local officials estimate there are about 60 crypto ATMs scattered across Clay County, mostly in gas stations, liquor stores and convenience stores — mirroring national data showing roughly 40% of U.S. kiosks are located in similar venues. ^[8]

A National Trend: Crypto ATM Fraud Tops $100 Million

What’s happening in Clay County is not an isolated problem — it’s part of a nationwide pattern.

The FBI reports that U.S. cryptocurrency kiosk fraud exceeded $107 million in 2024, a 31% increase from 2023. ^[9]
FinCEN’s August 4, 2025 notice on “convertible virtual currency kiosks” cites FBI Internet Crime Complaint Center data showing more than 10,900 complaints involving crypto kiosks in 2024, with roughly $246–$247 million in related losses when broader scam categories are included. ^[10]
Older adults are hit hardest: AARP and FBI figures suggest people over 60 account for around two‑thirds of the dollars reported lost to crypto ATM scams. TS2 Tech+2Governing+2

Local reports around the U.S. are telling similar stories:

In Marathon County, Wisconsin, seniors have collectively lost up to $180,000 to crypto ATM scams, with sheriff’s officials calling the kiosks “reverse ATMs” because victims are only putting money in — not getting it back. ^[11]
Investigators in neighboring Wood County estimate that in a county of just 80,000 people, residents have lost between $500,000 and $1 million to similar schemes over the past two years. ^[12]
Iowa’s attorney general has sued two major crypto ATM operators after hundreds of residents allegedly sent more than $20 million through kiosks in under three years, much of it tied to scams, while operators charged fees above 20%. ^[13]

The mechanics are strikingly consistent: unsolicited calls, someone impersonating law enforcement or a bank, urgent threats, and then detailed instructions on how to withdraw cash, find a kiosk, and send funds via a QR code — often while the scammer stays on the line coaching the victim through every step. ^[14]

A 40,000‑Machine Industry: Booming, Visible — and Expensive

The fraud is rising at the same time the crypto ATM business is exploding.

Industry data compiled from Finbold and CoinLaw suggests:

On July 1, 2025, there were about 38,726 Bitcoin ATMs worldwide.
By September 30, that figure had climbed to roughly 39,374 — about seven new machines coming online every day. ^[15]
CoinLaw estimates that by early 2025, global crypto ATM installations topped 38,700, with more than 80% of all machines in North America. ^[16]
Major U.S. operators such as Bitcoin Depot, CoinFlip and Athena Bitcoin collectively control tens of thousands of kiosks and more than half of the market. ^[17]

Yet counting machines has become contentious. FinCEN cites 37,342 U.S. kiosks as of January 1, 2025, while advocacy groups relying on broader kiosk lists say there may be more than 45,000 nationwide, and some media reports peg the total number of crypto kiosks in the U.S. closer to 50,000. ^[18]

High Fees and Hidden Costs

Convenience is a core selling point — many users are unbanked, paid in cash or wary of linking bank accounts to online exchanges. But that convenience comes at a steep price:

Typical crypto ATM fees fall between 5% and 25% per transaction, far above the roughly 1.5–2.2% charged by major online exchanges. TS2 Tech+2International Business Times UK+2
Investigators in the UK recently found an unregistered ATM network charging 30–60% per transaction, according to reporting highlighted by IBTimes UK. ^[19]
State lawsuits in the U.S. accuse some operators of taking cuts above 20% while failing to implement basic safeguards against fraud. ^[20]

FinCEN’s notice warns that scammers are willing to absorb high kiosk fees — often 7–20% — because the channel allows them to receive funds quickly and irreversibly. ^[21]

New Flashpoint Today: Washington Shuts Down a Crypto ATM Operator

On December 2, 2025, Washington state regulators became the latest to draw a hard line.

The Washington Department of Financial Institutions (DFI) issued an emergency halt against a major crypto ATM operator after alleging the company improperly treated about $8 million in “user funds” as its own income. ^[22]

According to coverage of the enforcement action:

The operator allegedly blurred the line between custodial customer balances and corporate revenue.
Washington regulators are seeking license action and restitution, citing serious consumer‑protection concerns.
The case is framed as a warning shot to crypto service providers that transparency and proper segregation of user funds are non‑negotiable. ^[23]

The move follows a separate high‑profile case in Washington, D.C., where the attorney general sued Athena Bitcoin in September, alleging that 93% of deposits into its local ATMs over a five‑month period were linked to scams, with a median victim age of 71. TS2 Tech

Together, those actions illustrate a new phase: regulators are no longer focused only on scammers; they’re increasingly targeting the business models of the kiosks themselves.

Regulatory Squeeze: From State Laws to a Federal “Crypto ATM Fraud Prevention Act”

In the U.S., rules are tightening on multiple fronts.

FinCEN’s August 2025 Notice

The August 4 FinCEN notice is widely seen as the turning point for federal attention to crypto ATMs. The agency:

Emphasized that crypto ATM operators are money services businesses subject to Bank Secrecy Act requirements, including registration, KYC and suspicious‑activity reporting.
Highlighted law‑enforcement data showing scammers increasingly directing victims to specific kiosks, sometimes across state lines, to avoid machines run by more compliant operators.
Flagged elder‑fraud typologies in which victims are coached through withdrawing cash, locating a kiosk, scanning a QR code and splitting payments to dodge transaction limits and monitoring. ^[24]

State‑Level Caps, Warnings and Refund Rights

Driven by AARP, local police and state regulators, nearly a dozen U.S. states have enacted new crypto ATM rules in 2025, and around 20 have drafted or passed some form of regulation. Common tools include: ^[25]

Daily transaction limits
- Iowa now caps per‑day crypto ATM transactions at about $1,000 after residents lost more than $20 million through kiosks in under three years. TS2 Tech+1
- Wisconsin’s financial regulator recently imposed a statewide $2,000 daily limit on crypto ATM use, a move local sheriffs say appears to have sharply reduced reported scams in at least one county. ^[26]
Mandatory warnings and licensing
- States such as Arizona, Maryland, Nebraska and Oklahoma require crypto ATM operators to register as money transmitters, display explicit fraud warnings on‑screen and issue detailed receipts. ^[27]
Refund rights
- New laws in places like Minnesota and Rhode Island compel operators to refund certain fraudulent transactions, especially where victims are first‑time users who acted within a short window (for example, 14 days in Minnesota or 30 days in some other states). TS2 Tech+1

St. Paul, Minnesota, has gone further. Its city council voted on November 20 to ban all cryptocurrency kiosks from December 21, citing overwhelming harm to seniors and low‑income residents and referencing FBI data of nearly 11,000 kiosk‑related fraud complaints. TS2 Tech+2kcur.org+2

A Federal Bill in Congress

In Washington, D.C., lawmakers have introduced S.710, the Crypto ATM Fraud Prevention Act of 2025. The bill, currently before the Senate Banking Committee, aims to amend federal law to specifically address “virtual currency kiosks,” potentially standardizing features like transaction caps, warning prompts and identity checks nationwide. TS2 Tech+1

While the bill has not yet advanced to markup, its bipartisan support signals that crypto ATMs are on Congress’s radar — and that tougher national rules are likely a matter of when, not if.

Beyond the U.S.: EU, UK and Australia Tighten the Screws

The regulatory backlash is global.

European Union: MiCA Ends “Anonymous” Bitcoin ATMs

Under the EU’s Markets in Crypto‑Assets Regulation (MiCA), crypto ATM operators fall under the broader category of crypto‑asset service providers and will need authorization, capital buffers and robust AML controls. TS2 Tech

Analysts say the combined effect of MiCA and updated EU anti‑money‑laundering rules will effectively end truly anonymous crypto ATM usage in most member states:

Historically, users in some countries could buy up to roughly €1,000 per day at ATMs with minimal ID checks.
Under MiCA and the “travel rule,” operators are expected to identify users and record recipient wallet details, even at lower thresholds. TS2 Tech

Countries like Spain and Germany already treat Bitcoin ATM operators as full‑blown financial institutions, and authorities have seized unlicensed machines in enforcement sweeps. TS2 Tech+1

United Kingdom: De Facto Ban

Since 2022, the UK’s Financial Conduct Authority has not authorized any crypto ATM operator, meaning every machine in the country is technically illegal. The FCA has staged raids on unregistered kiosks and, in 2025, the crackdown produced its first prison sentence for an operator who ran an 11‑machine network that processed millions of pounds. TS2 Tech+1

Australia: High‑Risk Product Under AUSTRAC Scrutiny

Australia has emerged as a fast‑growing market — with machine counts rising from a few dozen just a few years ago to well over 1,000 — but regulators now classify crypto ATMs as high‑risk. ^[28]

AUSTRAC’s recent enforcement actions and a task force report found:

85% of transactions by the 90 most active Australian crypto ATM users were linked to scams or money‑mule behavior.
Roughly A$275 million flows through local kiosks annually, almost all of it cash deposits.
New rules impose A$5,000 daily limits, enhanced due‑diligence requirements and prominent scam warnings, and at least one operator has faced penalties and undertakings over AML failures. TS2 Tech+1

Safety Debate: Fees, Vulnerabilities and Consumer Protection

An IBTimes UK analysis published on December 1 captures the core tension: crypto ATMs offer speed and accessibility, but they have become magnets for both social‑engineering scams and questionable business practices. ^[29]

Key concerns raised in recent reporting include:

Predatory fee structures – With some unregistered networks charging 30–60% per transaction, regulators argue the poorest and least tech‑savvy users bear the worst costs. ^[30]
Patchy compliance – FinCEN and the Federal Reserve Bank of Kansas City have flagged widespread non‑compliance with anti‑money‑laundering rules, including operators that fail to collect basic customer information or ignore obvious red flags. ^[31]
Irreversible failures – Cases have emerged where users lost funds due to technical glitches or unresponsive operators, sometimes left chasing support through anonymous messaging apps. ^[32]

Industry groups push back, arguing that fraud is proportionally higher in other payment channels and that most kiosk transactions are legitimate. But the growing stack of lawsuits, enforcement actions and investigative stories is clearly shifting political momentum toward tighter oversight. ^[33]

Who Actually Uses Crypto ATMs — and Who Gets Hurt?

Data from CoinLaw, FinCEN, AARP and international regulators paints a nuanced picture of crypto ATM users: ^[34]

Heavy everyday use by older adults – In some markets, customers over 50 account for more than 70% of kiosk transaction value, and FBI data suggests people over 60 lose far more money through crypto ATMs than younger adults.
Underbanked and cash‑reliant customers – Many users lack easy access to online exchanges or traditional bank accounts, making kiosks an appealing on‑ramp.
Students and young adults as a fast‑growing target – Clay County officials and others report a noticeable increase in scams aimed at students with promises of loan help, scholarships or cheap electronics. ^[35]

In other words, the demographic mix that crypto ATMs were supposed to help — the underbanked and those with limited digital access — overlaps heavily with the groups most vulnerable to high‑pressure fraud.

How to Protect Yourself if Someone Tells You to Use a Bitcoin ATM

Regulators and law‑enforcement agencies around the world agree on one simple rule: if someone is telling you to pay a bill, fine, tax, debt or investment via a crypto ATM, treat it as a red‑alert scam. ^[36]

Practical steps:

Hang up and verify
If a caller claims to be from the police, a court, the IRS, Social Security, a utility company or tech support — and demands crypto — hang up. Look up the agency’s official number and call back yourself.
Never rush to the kiosk
Scammers create panic and insist on secrecy and speed. Any demand that you withdraw large sums of cash and go immediately to a Bitcoin ATM is a huge red flag.
Talk to someone you trust
Before sending money, speak to a family member, friend, your bank or local law enforcement. Many victims say a single outside conversation would have stopped the scam. ^[37]
Look for warning signs at the machine
Increasingly, legitimate operators and local prosecutors are placing bold warning posters directly on kiosks — like Clay County’s “Are you being scammed? Beware of cryptocurrency demands!” notices — and building on‑screen alerts into kiosk software. Take those messages seriously. ^[38]
Report suspicious activity
If you think you’ve been targeted or have already sent funds, contact your local police, your state attorney general’s office and the FBI’s Internet Crime Complaint Center as quickly as possible. While recovery is difficult, fast reporting can sometimes help investigators trace funds or stop scammers from targeting others. ^[39]

What Comes Next for Crypto ATMs?

The crypto ATM story in 2025 is fundamentally about friction between three forces:

A fast‑growing industry that analysts still expect to expand by an order of magnitude over the next decade. TS2 Tech+1
A fraud problem that has turned the machines into a favorite tool for scammers, particularly against older adults and those less comfortable with digital finance. ^[40]
A regulatory response that is rapidly evolving from scattered warnings into concrete laws, lawsuits, city‑wide bans and shutdown orders like today’s action in Washington state. ^[41]

For operators, the message is clear: survival in this space will increasingly depend on visible consumer protections, transparent fees, rigorous compliance and proactive cooperation with regulators.

For consumers, especially anyone who gets an alarming phone call out of the blue, the safest assumption is even clearer: if someone demands payment through a crypto ATM, it’s almost certainly a scam.