CFTC warns consumers about risks of using crypto ATMs

The Commodity Futures Trading Commission issued a consumer advisory on Tuesday warning about the risks of cryptocurrency ATMs, the cash-to-crypto kiosks that have spread to gas stations and convenience stores across the country. The agency flagged two core dangers: irreversible transactions and the ability to obscure the identities of the people on the other end of a transfer.

The FBI recorded roughly 11,000 complaints tied to crypto kiosks in 2024, totaling approximately $247 million in reported losses. That represented a 99% increase from the prior year. By 2025, losses exceeded $388 million across more than 13,400 complaints, according to the FBI's Internet Crime Complaint Center.

The Federal Trade Commission added texture to the numbers. In the first half of 2024, the median reported loss per crypto ATM scam victim was $10,000. Individuals over 60 were more than three times as likely to report losses from these scams compared with younger adults, the FTC said.

The playbook follows a grim pattern. A scammer contacts a victim, often impersonating a government agency or a romantic interest, and instructs them to withdraw cash and deposit it into a crypto ATM. The funds convert to cryptocurrency and transfer to the scammer's wallet instantly. No chargebacks or reversals, and no recourse for victims.