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The US Bitcoin ATM network has faced an existential regulatory assessment as federal data identifies these machines as a primary conduit for financial fraud.
Americans lost more than $333 million in 2025 to scams that went through cryptocurrency kiosks.
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Bitcoin ATM scams prompt change policy change
Reports stated that the FBI recorded more than 12,000 complaints related to these devices between January and November 2025.
FinCEN data indicates a worsening trend, with reports of Bitcoin ATM-related fraud nearly doubling compared to the previous year.
As a result, regulators have now reconsidered the proliferation of some 31,000 kiosks across the country, mostly located at gas stations and convenience stores, and view the network as a systemic risk rather than just a consumer awareness issue.
It is worth noting that the devices provide fraudsters with the easiest path across the bridge between recoverable money and irreversible digital currencies.
Scammers usually ask victims to contact them and direct them to a physical location to deposit money.
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After the device converts the cash into Bitcoin and the victim sends it to the scammer’s wallet, the process becomes irreversible, bypassing the recovery protections built into the traditional banking system.
At the same time, the financial damage is disproportionately concentrated among older age groups.
FBI data indicates that people over the age of 60 account for a large percentage of losses. They are often aimed at “tech support”, “government impersonation” or “urgent problem” scenarios that exploit the presence of devices that are already widespread.
US agencies, such as the Financial Protection and Innovation Administration, have responded by stepping up public guidance efforts. The financial body recently published a “Protect Yourself” guide to address the increase in fraud at Bitcoin ATMs.
The Department of Financial Protection and Innovation stated that no legitimate entity will ask you to deposit money in a cryptocurrency ATM to solve a problem or protect your funds.
If someone asks you, it’s a scam.
At the same time, policy makers increasingly saw that awareness was not enough, and moved from warnings to strict regulation.
For example, countries like Australia have passed legislation to set daily transaction limits and ban the spread of these devices.
You see, industry analysts consider these structural controls a crucial step in slowing down the momentum of Bitcoin ATM fraud.
