Bitcoin ATM scam warning signs: why no real bank, agency or tech support ever asks you to use one
In 2025, Americans filed more than 13,400 complaints with the FBI about scams that ran through cryptocurrency kiosks, the "Bitcoin ATMs" found in gas stations and convenience stores. Reported losses topped $388 million, up 58% in a year, and more than $302 million of it came from people over 50.[1] This guide shows how the scam works, the warning signs to share with parents, grandparents and staff, and what to do if money has already gone into a machine.
Why scammers love Bitcoin ATMs
A Bitcoin ATM turns cash into cryptocurrency and sends it to a digital wallet. If the wallet belongs to a criminal, the money is usually gone within minutes. There is no bank on the other end to call and no card to dispute. That is why scammers steer people to these machines instead of asking for a check or a wire.
The Federal Trade Commission found that people 60 and over were more than three times as likely as younger adults to report a loss using one of these machines, and the median reported loss in early 2024 was $10,000.[2] About 86% of those losses involved one of three stories: someone pretending to be the government, someone pretending to be a business such as your bank, or a fake tech support call.[2]
A real case: from a pop-up to a pile of gold
A 70-year-old retiree in Carlsbad, California saw a pop-up saying her computer had been hacked and telling her to call for help. The "tech support" agents said her bank information was compromised and passed her to people posing as staff from her financial institutions. Told she had to "secure" her money, she deposited about $55,700 into Bitcoin ATMs.[3]
It did not stop there. The callers told her to buy gold and send it to the "U.S. Treasury" for safekeeping. Over two months she wired about $1.34 million to a precious metals dealer and handed the gold to couriers.[3] When the scammers asked for another $100,000, she contacted the FBI, which set up a controlled delivery with a fake package. The two men who collected that package were charged. Alexander Charles James pleaded guilty to wire fraud conspiracy and Xilin Sun pleaded guilty to money laundering conspiracy in late 2025.[4]
Notice the pattern. Every step was a "safety" step: protect your computer, protect your account, protect your savings. The machine and the gold were presented as the safe place. That is the whole trick.
The warning signs
If any of these show up, stop and hang up:
- Anyone tells you to pay at a Bitcoin ATM or crypto kiosk. Real banks, government agencies, courts, police and utilities do not take payment that way.[1][2]
- A pop-up, call or text you did not expect says your computer, bank account or Social Security number has a problem.
- You are told to withdraw cash and "move it somewhere safe," especially in large bills.
- Someone sends you a QR code and walks you through scanning it at the machine.[1]
- You are told to stay on the phone while you go to the bank and the kiosk, or told not to tell the bank teller, your family or anyone else why you need the cash.
- The caller claims you missed jury duty, owe a fine or face arrest unless you pay right now.
- A "grandchild," friend or relative calls from a new number asking for crypto in an emergency.[1]
The FBI also asks bank tellers and store clerks to watch for people who seem confused or nervous while taking out large first-time cash withdrawals, who are carrying big sums of cash to a kiosk, or who are talking on the phone the whole time.[1] If you are that person and someone asks if you are okay, take the question seriously.
Simple rules for families and small offices
- One sentence to remember: no real bank, agency or tech support will ever ask you to use a Bitcoin ATM, buy gift cards or move money to protect it.[2]
- Hang up and call back on the number printed on your bank card, statement or the agency's official website. Never use the number in the pop-up or text.
- Pop-ups are not phone calls. Close the browser, restart the computer, and never call a number shown in a warning.
- Agree on a family check-in rule. Any request for cash, crypto or gold gets a call to a trusted family member first. Scammers rely on secrecy; a five-minute call breaks it.
- Tell front-desk and billing staff that "the IRS," "the utility" or "the sheriff" never takes kiosk payments, and that they will never be in trouble for hanging up.
- If a kiosk warns that the transaction looks like fraud, stop.[1]
If money already went into a machine
- Stop sending more. Scammers often come back with a second story, such as a fee to "recover" the first loss.
- Keep every receipt. The FBI asks for the transaction ID, the wallet address, the kiosk location, the scammer's phone numbers and a short description.[1]
- Call the kiosk company's support line printed on the machine or receipt, and your bank.
- Report it to local police and at ic3.gov. People 60 and older can call the National Elder Fraud Hotline at 1-833-372-8311 for help.[4]
Common questions
Are Bitcoin ATMs illegal?
No. They are legal businesses, and many people use them for normal purchases. The problem is that criminals use them as a payment window because cash sent this way is hard to trace and almost impossible to reverse.
The caller ID showed my bank's real number. Is it safe?
No. Caller ID can be faked. Hang up and dial the number on the back of your card yourself.
Can the money be recovered?
Sometimes, but rarely. Fast reporting with the transaction ID and wallet address gives investigators the best chance.
Make the rules stick
Print the free checklist for your office or family. For businesses, the Insider Threat Kit adds a self-assessment, payment-change verification procedure and a 30-day action plan.
General guidance, not legal or financial advice.
- FBI Internet Crime Complaint Center: Cryptocurrency Kiosk Complaint Data by State (PSA I-051526-PSA, May 15, 2026)
- FTC Data Spotlight: Bitcoin ATMs, a payment portal for scammers (September 3, 2024)
- U.S. Attorney's Office, Southern District of California: Man charged in $1.49 million scam involving Bitcoin ATM deposits and bulk gold purchases (April 18, 2024)
- U.S. Attorney's Office, Southern District of California: Two men plead guilty in $1.49 million scam involving bulk gold purchases (December 2, 2025)