Bitcoin ATM Fraud Hits Record High, $333 Million Pilfered In 2025: Report

The Federal Bureau of Investigation (FBI) reported a record increase in Bitcoin ATM fraud in 2025, with scammers defrauding Americans of over $333 million. This represents a sharp rise compared to 2024, when losses were approximately $250 million. The FBI noted a "clear and constant rise" in such fraudulent activity.

Cryptocurrency kiosks have become a favored tool for fraudsters. Scammers often manipulate victims into depositing cash into these ATMs under false pretenses, converting the cash into Bitcoin and transferring it to their wallets. The FBI recorded over 12,000 complaints from January to November 2025, reflecting a significant increase from the same period in the prior year.

Law enforcement agencies and consumer protection groups have taken notice. The Washington, D.C., attorney general's office sued Athena Bitcoin, one of the largest providers of Bitcoin ATMs, alleging the company pocketed undisclosed fees from scam victims. The lawsuit claimed that 93% of transactions on Athena's machines were fraudulent and that the median age of victims was 71 according to the report.

Why Did This Happen?

The rapid growth in Bitcoin ATM usage has made these machines attractive to scammers. There are now more than 45,000 Bitcoin ATMs across the U.S., with over 30,000 of them located in the country alone. These kiosks enable users to deposit cash and send it to a digital wallet in minutes, a process that is nearly impossible to reverse once completed according to analysis.

The FBI noted that scammers typically impersonate banks or government agencies, advising victims to deposit cash into a Bitcoin ATM to protect their funds. This tactic plays on fear and urgency, pushing victims to act quickly without verifying the legitimacy of the request.

How Did Markets Respond?

Regulators and consumer advocacy groups are responding to the crisis. The American Association of Retired Persons (AARP) has called for stricter regulations, including daily transaction limits, clearer scam warnings, and refund mechanisms when fraud is confirmed. At least 17 U.S. states have passed laws regulating Bitcoin ATMs, while some municipalities have banned them outright according to reports.

The Financial Crimes Enforcement Network (FinCEN) also issued warnings about the increasing use of Bitcoin ATMs for illicit activities. The agency emphasized the need for stronger oversight to prevent these machines from becoming a primary conduit for financial fraud.

What Are Analysts Watching Next?

Industry experts are closely monitoring how regulatory actions will impact the Bitcoin ATM market. Some analysts suggest that transaction limits and mandatory consumer education could reduce the number of fraudulent activities. Others warn that without stronger enforcement, scammers will continue to exploit the lack of chargeback protections in cryptocurrency transactions according to market analysis.

The FBI and other law enforcement agencies are also tracking the effectiveness of existing laws. The Washington, D.C. lawsuit against Athena Bitcoin and similar actions in other states highlight the growing regulatory scrutiny. As of now, no major Bitcoin ATM operator has implemented a comprehensive solution to prevent fraudulent transactions according to industry reports.

Bitcoin ATM fraud is expected to remain a key issue in 2026. With over 45,000 machines across the U.S., regulators and law enforcement must balance accessibility with security. The challenge lies in implementing safeguards without stifling the innovation that made cryptocurrency attractive in the first place according to economic analysis.