Insert cash, withdraw crypto, attract scammers — technology has made losing your life savings as easy as pushing a few buttons. Bitcoin ATMs (BTMs) allow cash purchases of cryptocurrency, making them a convenient alternative to exchanges. However, scammers also exploit the features that make Bitcoin appealing — decentralization, anonymity, and irreversibility. With the rapid rise of these crypto kiosks in the US, hackers and fraudsters have taken notice.

• According to the Federal Trade Commission, BTM-related fraud has skyrocketed by 1,000% from 2020 to 2023, with actual losses likely much higher as most cases go unreported.
• In the first half of 2024 alone, BTM users reported $65M in losses, with people aged 60 and over losing $46M of that total.

Wolf in sheep’s clothing: Scammers are getting craftier, with ~86% of reported BTM fraud losses stemming from government or business impersonation scams. Even with personal details required for KYC regulations, the anonymity of cryptocurrency transactions allows criminals to move money through unregulated offshore exchanges. With just 10 operators controlling ~74% of the world’s cryptocurrency ATMs and no uniform security standards, victims are often left high, dry, and crypto-less.