FBI data shows cryptocurrency ATM scams exploding in United States

Data from the FBI shows a new way of scamming people is exploding across the country.The common denominator in the scams is a cryptocurrency ATM. You might not have heard of them, but the small kiosks are becoming increasingly more common in the Kansas City metro.”They’re incredibly common, and it’s because these machines are now everywhere,” said Nick Gicinto, the Chief Information Security Officer at William Jewell College.Users feed cash into a cryptocurrency ATM, the ATM converts the bills into a crypto of your choice, and then the digital currency can go anywhere in the world.”Wallets for cryptocurrency are anonymous,” Gicinto said. “You don’t necessarily know who owns the wallet.”Gicinto said this is what makes these machines so appealing to criminals.The FBI reports it got nearly 11,000 complaints about scams involving these machines in 2024. That’s a 99% increase over 2023. The FBI data shows all of those crimes added up to almost $250 million in losses. “It’s not a small change,” Gicinto said. “Some people have lost their life savings through these. And what they’re doing is preying on fear.”These machines have become such a tool for criminals many now have warning stickers pasted to them and additional warnings built in.On a crypto ATM at the VaporWyse Smoke Shop in Excelsior Springs, there are two stickers on the ATM with scam warnings. Before you can put money into the ATM, there’s also a screen warning of scams with six questions to ask yourself to determine if you’re being scammed.”These have been traditional phishing scams or telephone scams that they’ve just recycled into a new look,” said Gicinto.If you do get scammed, Gicinto said you need to report the crime to law enforcement. He recommends the FBI.”The FBI can go to the cryptocurrency exchange where the bad actor is using and serve them with process,” said Gicinto. “And there’s now an established process to get letters to them quickly, and they’ll freeze funds before the bad actor has the opportunity to withdraw them.”The sooner you report the crime, the better chances you have of getting your money back.”The question is, can you get to it before they convert it to a fiat currency and withdraw it to their bank accounts in whatever country those happen to be?” Gicinto said.Gicinto said the best way to avoid these scams is to know no legitimate entity, like the government or law enforcement, will demand cryptocurrency as the only form of payment.Additionally, never send money to anyone you’ve never met in person.