Crypto ATM fraud is increasingly becoming a nationwide issue, raising concerns among regulators and prompting new efforts to protect consumers. Over the past few years, cryptocurrency ATMs—machines that convert cash into digital currency—have spread to convenience stores, gas stations, laundromats, and other public spaces, making it easier for people to buy or send crypto. But this convenience has also attracted scammers who exploit the anonymity and irreversibility of crypto transactions.

Fraud losses from crypto ATMs have surged nearly tenfold from 2020 to 2023, with reported losses surpassing $65 million in just the first half of 2024. These figures likely underestimate the true scale of the problem, as many scams go unreported. The typical method involves fraudsters impersonating government officials, tech support, or romantic interests, convincing victims to withdraw cash and deposit it into a crypto ATM, which then sends funds directly to the scammer’s digital wallet. Once transferred, these funds are nearly impossible to trace or recover.

Many victims are urged to act urgently, often after receiving convincing phone calls, texts, or emails with fake stories of trouble or opportunity. Older adults have become especially high-risk targets, with people over age 60 accounting for a substantial portion of reported losses.

States like Montana are taking notice and launching regulatory initiatives to address the threat. Proposed measures include requiring businesses with crypto ATMs to post clear warnings about potential scams and considering legislation for better oversight of these machines. Consumer advocates and law enforcement agencies are urging the public to slow down and question any demand for immediate payment via crypto ATMs. Legitimate companies, government agencies, and tech support providers will never ask for payment through cryptocurrency ATMs.

As the prevalence of crypto continues to grow, the push for stronger consumer protections and clear regulations around crypto ATMs is expected to intensify. Public awareness efforts remain crucial in helping people recognize the warning signs and avoid falling prey to these increasingly sophisticated scams.