If anyone — a "government official," "fraud investigator," tech-support agent, online love interest, or "financial advisor" — is telling you to withdraw cash and feed it into a Bitcoin ATM (a crypto kiosk), stop. It is a scam, and it is one of the fastest-growing ways Americans are losing money. The FBI's Internet Crime Complaint Center (IC3) reports that in 2025, victims lost over $388 million through crypto kiosks.
This briefing covers how the scam works, the warning signs the FBI itself flags, and what to do — including how to protect the people most targeted: older relatives.
The scale (FBI / IC3, 2025)
- 13,400+ complaints involving cryptocurrency kiosks, with $388 million in losses — up 23% in complaints and 58% in losses from 2024.
- People over 50 lost more than $302 million — over half of the total.
- Top states by complaints: Texas (1,179 / $56.8M), Florida (1,213 / $32.8M), California (978 / $24.0M), Illinois and Pennsylvania.
How the scam works
A crypto kiosk looks like a normal cash machine and lets people buy crypto with cash — found in gas stations, convenience stores, and malls. The scam is almost always social engineering, not hacking:
- You're contacted out of the blue — an "agent," "investigator," support line, or someone you met online — and told there's an urgent problem (fraud on your account, a fine, a love-interest emergency).
- You're walked through withdrawing cash from your bank, told to find a specific kiosk, and instructed to scan a QR code and deposit the cash.
- That QR code is the attacker's wallet. The moment you send, the crypto is gone — instantly and irreversibly.
The one rule that stops it
No legitimate government agency, law-enforcement body, bank, utility, or business will ever ask you to pay using a Bitcoin ATM or crypto kiosk. That request, by itself, means it's a scam — full stop. Real agencies don't take payment in crypto at a kiosk, and they don't pressure you to act in minutes.
FBI warning signs (for you and your family)
- You were sent a QR code to scan that you can't fully explain.
- A first-time or unusually large cash withdrawal, especially in big denominations.
- Pressure, secrecy, or threats ("act now or you'll be arrested / lose your money").
- Instructions over the phone from someone you've never met in person.
What to do
- Stop and don't send. Hang up; verify independently by contacting the agency/bank yourself using a number you find, not one you were given.
- If you've already sent funds, report it to the FBI at ic3.gov with the transaction IDs, the wallet address, the kiosk location, and the scammer's contact details — then call your bank.
- Talk to older relatives. Over-50s are the prime target; a five-minute conversation about this scam is the best defence.
Bottom line
Crypto kiosks are legal and have legitimate uses — but being directed to one by someone who contacted you is the scam. Keep the rule simple: nobody official takes payment at a Bitcoin ATM. If you want to brush up on protecting your wallet generally, see our briefing on the Ledger letter scam.
Sources
Frequently asked questions
Is being asked to pay at a Bitcoin ATM always a scam?
If someone who contacted you tells you to withdraw cash and deposit it at a crypto kiosk, treat it as a scam. No legitimate government agency, bank, utility, or business takes payment via a Bitcoin ATM.
I already sent crypto at a kiosk — can I get it back?
Crypto sent to a scammer's wallet is effectively irreversible, but report it immediately to the FBI at ic3.gov with the transaction IDs, wallet address, and kiosk location, and contact your bank — fast reporting can sometimes help investigations.
Who is most at risk?
The FBI found over half of 2025 losses (more than $302 million) involved people over 50. Talk to older relatives about the 'pay at a Bitcoin ATM' red flag.