As a result of an unprecedented volume of crypto scams that occurred in 2021, the Federal Bureau of Investigation (FBI) has issued a warning to all consumers about these types of fraudulent schemes. According to new data released by the bureau, Americans lost at least $333 million to Bitcoin ATM scams in 2025, a figure that law enforcement describes as a “clear and constant rise” that shows no signs of slowing down.
This grim statistic marks a dramatic escalation in what has become one of the most pervasive financial crimes of the decade. Reported losses first breached the $100 million mark in 2023, hitting $114 million. That figure more than doubled to $247 million in 2024. Although the rise to $333 million in 2025 is a relatively lower percentage increase, the amount of money being extracted from individuals, particularly those past retirement age, has led regulators and law enforcement to search for answers.
A “Clear and Constant Rise”
Scammers typically use very simple tactics to perpetrate their schemes. Victims are generally contacted through phone calls or text messages and then coerced into believing that either their bank account has been hacked or that someone close to them is in trouble with the law. To “protect” their funds or bail out someone on false charges, the victim is told to take out all available cash from their account and bring it to a local Bitcoin ATM to deposit. Once the cash is fed into the kiosk and converted to crypto, it is instantly transferred to a wallet controlled by the scammer, often overseas.
“The speed at which these transactions settle makes them nearly irreversible,” an FBI spokesperson told reporters. Unlike a bank wire, which can sometimes be recalled, a blockchain transaction is final the moment it is confirmed. Criminal organizations have exploited this feature’s efficiency to steal the victims’ entire capital base within minutes.
Targeting the Vulnerable
The demographic data behind these losses is particularly troubling. Authorities have accused Bitcoin ATM operators of turning a blind eye to a customer base that is disproportionately elderly and vulnerable.
In a landmark legal action, the Washington D.C. Attorney General sued major operator Athena Bitcoin in late 2025. According to the legal documents submitted in this case, it is estimated that 93% of all transactions made by kiosks operated by Athena within the District were frauds. Victims’ median age was reported to be 71 years old. The findings suggest that there exists an ecosystem of predatory practices, where elderly individuals are exploited using their lack of understanding of the kiosks.
Corporate Defense and Compliance
Athena Bitcoin took a firm stance in defense of the way it operates after being characterized incorrectly by the media. The company issued public statements to clarify that it does not dictate or influence what its users can do with their coins. “Just as a bank isn’t held responsible if someone willingly sends funds to someone else, Athena does not control users’ decisions,” a representative told ABC News.
The company maintains that it has implemented “strong safeguards,” including prominent warnings on kiosk screens and transparent instructions designed to alert users to potential fraud. However, critics argue that for a panicked victim on the phone with a manipulator, a screen warning is rarely enough to break the spell.
Drastic Measures: The Power Tool Incident
The frustration of officials has caused many local enforcement to become physically involved with these scams. Beginning in 2023, an incident in Jasper County, Texas reflects how law enforcement can sometimes feel helpless. This was made clear when the sheriff’s department directly intervened in a case. A local family lost $25,000 in a scam, and through the investigation of the case, funds were traced back to a Bitcoin Depot ATM. Armed with a search warrant and a power tool, deputies physically drilled into the machine to seize the cash box inside. They recovered approximately $32,000, though the legal process to return that money to the specific victim remains complex. The Bitcoin Depot is seeking damages for its destroyed property, which is priced at approximately $14,000 per unit. This situation exemplifies the conflict between the police using deadly force as a means of desperation versus the rights of companies to protect their assets.
A Global Epidemic
The U.S. is not the only country fighting this problem. Australia has identified the same trend and has determined a large majority of crypto ATM users in Australia to be either victims of scams or money mules being coerced to launder money through crypto ATM’s. Tony Burke, Minister for Home Affairs, recently stated that of the top users of crypto ATM’s in Australia, 85% of the money was involved in scams. The similarity in the situation globally leads us to conclude that the issue is not related to the regulatory framework of any one country but the inherent structure of cash-to-crypto anonymity.
The Road Ahead
While cryptocurrency continues to grow in popularity, there is a large gap between legitimate use and criminal use of cryptocurrency. In fact, for many Americans, these kiosks will be their first experience with the digital asset economy and, sadly for the victims of over $333 million in 2025, it will probably be their last experience as well.
