Crypto ATM under scrutiny: 11,000 complaints

In the past year, the Federal Bureau of Investigation has collected approximately 11,000 complaints regarding scams related to crypto kiosks – physical terminals that allow the purchase or sale of cryptocurrencies using cash or cards, with QR codes and mobile wallets – with cumulative losses estimated at over 246 million dollars (Stateline).

A situation that has raised alarms in Washington, prompting the US Senate to consider more stringent measures for the digital asset sector, with a specific focus on crypto ATMs.

These data are also reflected in public warnings issued by law enforcement authorities: the FBI and the Federal Trade Commission have repeatedly highlighted fraud schemes related to crypto kiosks, drawing attention to manipulated QR codes and social engineering techniques (FBI, FTC).

According to public data and industry analyses, reports concentrated between 2023 and 2025 show recurring patterns of scams based on impersonation and emotional pressure; our editorial team has also found repeated reports from victims who report immediate losses at the time of purchase via ATM.

The topic has entered the agenda of the Senate Banking Committee as Senator Cynthia Lummis (Wyoming) reiterated the urgency of introducing tools to combat fraud facilitated through Bitcoin ATMs.

In this context, a report from the Cheyenne police department documents 50 fraud incidents, with losses exceeding $645,000 – figures that have prompted Lummis, along with Senator Kirsten Gillibrand (New York), to place ATM fraud among the legislative priorities under discussion. 

Crypto ATM Frauds: The Numbers and What “Crypto Kiosks” Are

Crypto kiosks or ATMs are physical devices that, through digital interfaces like QR codes, enable cryptocurrency transactions. According to estimates reported by Cointelegraph, in 2024 approximately 11,000 complaints related to these devices were registered, with cumulative losses exceeding 246 million dollars.

The reports, collected predominantly in the United States, cover various types of scams – from impersonation, to romance scams, to fake technical support operations – and are alongside warnings already issued by agencies like the FBI (FBI) and the FTC (FTC). Indeed, the topic is now central in the dialogue between institutions and operators.

From Wyoming to the Senate: the Cheyenne case and the political push

Senator Lummis highlighted the report from the Cheyenne police, according to which 50 fraudulent episodes have generated losses of over $645,000.

Together with Senator Gillibrand, Lummis emphasized the need to include ATM frauds among the priorities in the regulatory framework being defined (Cointelegraph). It should be noted that political sensitivity on the issue is clearly increasing.

US Crypto Regulation: What to Expect from the Senate

The bill under discussion aims to establish operational rules for crypto businesses and minimum standards for ATMs, including information obligations, transaction limits, and operator checks.

Senator Lummis has expressed hope that the measure can be signed by 2026 (Cointelegraph). In the absence of unified federal legislation, the framework remains fragmented: the House approved the CLARITY Act in the summer, while a draft circulated by Republican leadership in the fall – which did not explicitly mention crypto ATMs – highlights the need for further amendments.

Simultaneously, House Republicans have retroactively inserted a ban on CBDC within the same legislative framework. That said, the path remains open to modifications.

State and Local Regulations on Bitcoin ATMs

• At least 13 states have introduced or proposed restrictions on crypto ATMs, with daily limits, refund obligations in case of fraud, mandatory warnings, and operator registration.
• Cities like Stillwater (Minnesota) and Spokane (Washington) have adopted bans or restrictions on kiosks, while in Grosse Pointe Farms (Michigan) a daily limit of $1,000 has been imposed, despite the absence of active terminals (Cointelegraph).

Bills in Progress

• The Crypto ATM Fraud Prevention Act, introduced by Senator Dick Durbin, provides clear warnings for consumers and stringent obligations for operators; the bill, currently assigned to the Senate Banking Committee, has not yet reached a floor vote (Sen. Dick Durbin).
• Other state measures are being updated, with a focus on transparency, traceability, and reimbursement for verified frauds.

Crypto Industry and Congress: Ongoing Negotiations

Industry representatives have intensified contacts with Congress to discuss the market and parallel legislative proposals.

Among the topics on the agenda is the hypothesis—more political than technical—of establishing a national reserve in Bitcoin, up to 1,000,000 BTC, a hypothesis that continues to divide and keep the debate open. For more details, you can read Bitcoin in national reserve: Ukraine’s ambitious project.

Anti-fraud proposals: towards common standards on crypto ATMs

The proposed measures include clearly visible warnings on machines, transaction and daily amount limits, codified procedures for reimbursement in case of fraud, and mandatory registration of operators, with proportionate KYC/AML checks and blacklists of addresses known to law enforcement. In this context, convergence on common standards appears central.

How the crypto kiosk scam works: the typical case

The typical scheme involves the victim being contacted by a fake bank or police agent, who warns them of a “compromised” account and suggests “securing” the funds by depositing them in Bitcoin via an ATM. On site, the victim receives a QR code linked to the scammer’s wallet and, within minutes, the money becomes unrecoverable.

This model, highlighted in various warnings from the FBI and the FTC, is alongside romance scams and fake tech support centers, where urgency and the promise of an immediate solution are key elements.

What to Expect in the Coming Months

In the coming months, the Senate’s legislative package could establish a federal baseline for crypto ATMs, imposing more uniform rules on notifications, limits, and controls.

For the industry, this could translate into higher compliance costs but also greater regulatory certainty, with consumer protection shifting from fragmented guidelines to shared standards between federal and local levels. Yet, the balance between innovation and protection remains delicate.

FBI: Information on cryptocurrency scams and warnings about QR codes and ATMs are available on the information page.
Cheyenne Police Department Report: Data on 50 fraud cases with losses exceeding $645,000 (Cointelegraph).
Complaints and losses: 11,000 reports and $246 million in losses, numbers reported for 2024 (Cointelegraph, Stateline).
Legislative process: CLARITY Act passed by the House in the summer and the Crypto ATM Fraud Prevention Act introduced by Sen. Durbin – texts and numbers being updated (Congress.gov).

This evolving regulatory landscape demonstrates how coordination between federal, state, and local levels is attempting to balance the need to regulate a rapidly expanding sector with the protection of consumers from increasingly sophisticated frauds.