The Commodity Futures Trading Commission issued a warning on August 27 about crypto ATM scams following FBI data showing over $388 million in reported losses during 2025. According to reports from the CFTC, the warning comes after more than 13,400 cryptocurrency kiosk complaints were recorded during 2025, representing a 23% increase in complaint volumes from 2024. The reported losses increased by 58% year-over-year, highlighting the growing sophistication of these fraud schemes.
The FBI's detailed data reveals that more than half of kiosk complaints involved people over 50 years old, who reported losses exceeding $302 million. As reported by the CFTC, people aged 60 or older filed 6,188 complaints and reported more than $257 million in losses. Separate Federal Trade Commission research shows that older victims often lose larger amounts to business and government impersonation schemes, with cryptocurrency identified in 33% of reports involving older adults who lost at least $10,000 to such scams during 2024.
Unlike traditional bank ATMs, crypto kiosks convert deposited cash into cryptocurrency and send it to specified wallets, with transfers typically immediate, irreversible and difficult to trace after blockchain confirmation. According to the CFTC's advisory, scammers often provide wallet addresses or QR codes while remaining on telephone calls during transactions. They may direct victims to divide deposits among several machines or instruct them on how to respond to questions from kiosk operators or family members.
Federal agencies have combined consumer warnings with enhanced compliance measures. The Financial Crimes Enforcement Network (FinCEN) instructed financial institutions and kiosk operators to monitor transactions for fraud and file suspicious activity reports when required. As reported by crypto.news, Arizona's crypto ATM refund law returned $171,332 to 35 scam victims after introducing transaction limits, fraud warnings and reimbursement requirements. Minnesota's crypto ATM ban took effect after nearly $1 million in reported losses, while other states have adopted transaction limits, mandatory receipts, and holding periods instead of complete bans.
The CFTC advises consumers to end unsolicited conversations and independently contact organizations being impersonated using telephone numbers or websites they locate themselves. According to the warning, suspected victims should preserve kiosk receipts, wallet addresses, QR codes, transaction hashes, communications and the machine's physical location. These records can help investigators trace funds even when recovery is not guaranteed. Reports can be submitted through the CFTC's complaint portal and the FBI's IC3 website, with victims also encouraged to contact local law enforcement and kiosk operators promptly.
