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Crypto ATM Scams Resulted in $388 Million Losses, CFTC Warns

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On August 26, the Commodity Futures Trading Commission (CFTC) issued a warning to American consumers about scammers exploiting crypto ATMs, unfamiliar software programs, gift cards, and couriers to get payments that are hard to refund. This alert comes after FBI statistics revealed over 13,400 reports involving cryptocurrency kiosks and over $388 million (roughly Rs. 3,705 crore) in losses in 2025. The number of complaints increased by 23 percent in 2024 compared to the previous year, while the amount of losses reported increased by 58 percent. 

Older Adults Accounted For Majority Of Reported Losses

Losses reported were likely higher since most people failed to file reports regarding their fraud. The statistics also cover cases where transactions took place using other money transfer systems. As a result, it is incorrect to say that all losses came from crypto ATM depositors. Unlike a bank’s ATM, a crypto kiosk is a device that changes cash into cryptocurrency and transfers the proceeds to a specific wallet. Often, the scammers give the address of the wallet or QR code and stay on the phone until the victim makes the deposit. They may guide the victims on how to distribute the funds between different kiosks and how to answer if some kiosk operator, employee of the bank, or relative asks any questions.

According to the advisory of the CFTC, scammers tend to pretend that they are from government organisations, banks, financial institutions, utility firms, and even tech support. They do this by making a person believe that his/her identity, computer, or savings account is at risk. “No government agency, legitimate financial institution, or reputable company will instruct you to move money using crypto ATMs, gift cards, or couriers,” the CFTC said.

Over 50 percent of complaints made against cryptocurrency kiosks by the FBI were from those above 50 years of age, with the total loss being more than $302 million (roughly Rs. 2,884 crore). The detailed records by the FBI show that there have been about 13,460 kiosk complaints in the year 2025. There have been 6,188 complaints made by those above 60 years of age and more than $257 million (roughly Rs. 2,454 crore) in losses.

Federal Trade Commission research has independently revealed that elderly people tend to lose more money in cases of impersonation by businesses and governments. According to FTC research, in 2024, cryptocurrency accounted for 33 percent of losses worth at least $10,000 (roughly Rs. 9.5 lakh) reported by older people subjected to such scams.

Kiosk receipts, wallet addresses, QR codes, transaction hashes, communications, and the location of the kiosk must be retained by suspected victims since it might help the investigation of the case even when there is no guarantee of recovery. They can file their complaint using the complaint portal of the CFTC and the website of the FBI IC3. Victims must also contact local authorities and the kiosk operator.

In August, the Arizona law on crypto ATMs assisted 35 scam victims in recovering their refunds amounting to $171,332 roughly Rs. 1.6 crore) since the bill became effective in September 2025, reports the Arizona Attorney General. In an interview, Arizona Attorney General Kris Mayes stated that the law assisted the victims in getting full refunds and urged citizens to report such fraudulent transactions before the 30-day deadline of the law. 

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article. 

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