The FBI is sounding the alarm after a dramatic surge in bitcoin ATM fraud, revealing that scammers drained more than $333 million from victims in 2025 — a sharp escalation in a crime trend that shows no sign of slowing.

According to newly released bureau data, fraudulent transactions conducted through cryptocurrency kiosks have risen steadily for years. Losses jumped from roughly $250 million in 2024 — itself more than double the previous year — to $333.5 million between January and November 2025. Investigators describe the pattern as a “clear and constant rise.”

🏧 Why Bitcoin ATMs Are a Scammer’s Dream
With more than 45,000 bitcoin ATMs across the United States, the machines offer a simple proposition: insert cash, send cryptocurrency to any digital wallet worldwide, and complete the transaction in minutes.
But that speed and irreversibility make them ideal tools for fraud.

“Requesting crypto is now the No. 1 preferred method of criminals,” said Amy Nofziger, who leads fraud victim support at AARP. “It is a huge problem”.

Once money is sent, recovering it is nearly impossible — a fact scammers exploit in schemes ranging from fake government threats to romance scams and phony investment pitches.

⚖️ Legal Scrutiny Intensifies
Authorities are beginning to push back. In September, Washington, D.C.’s attorney general filed a lawsuit against Athena Bitcoin, one of the country’s largest bitcoin ATM operators, accusing the company of profiting from undisclosed fees charged to scam victims.

The complaint alleges:

93% of transactions on Athena’s D.C. machines were tied to fraud

The median victim age was 71

The company collected “hundreds of thousands of dollars” in hidden fees

Athena strongly denied the accusations, insisting it provides clear warnings, transparent instructions, and consumer education. “Just as a bank isn’t held responsible if someone willingly sends funds to someone else, Athena does not control users’ decisions,” the company said in a statement.

🛡️ Calls for Regulation Grow
Advocacy groups like AARP are urging lawmakers to impose tighter safeguards, including daily deposit limits to reduce the scale of losses. At least 17 states have already enacted regulations targeting bitcoin ATMs, and some cities have gone further by banning them outright.

The FBI, meanwhile, continues to warn that the combination of anonymity, speed, and global reach makes cryptocurrency kiosks an increasingly attractive tool for criminals — and a growing threat to consumers.