Cryptocurrency ATM Frauds Targeting Older Americans Reach Critical Levels
Cryptocurrency-related fraud involving Automated Teller Machines (ATMs) has surged across the United States in 2024, resulting in an estimated $9.3 billion in losses — a 66% increase from the previous year, according to research highlighted by AARP. Older adults, particularly those aged 60 and above, have been disproportionately affected, losing approximately $2.8 billion to scams involving cryptocurrency ATMs so far this year.
Growing Vulnerability Among Older Adults
Surveys reveal that most U.S. adults, especially older individuals, cannot distinguish between cryptocurrency ATMs and traditional bank ATMs. This confusion is exploited by fraudsters who use the speed, ease, and anonymity of crypto ATMs to quickly siphon funds from victims. Around 13% of U.S. adults — equivalent to 3.6 million people — have been approached to invest in cryptocurrency scams or know someone who has, with higher incidence reported among African American/Black adults and younger age groups.
Among those involved in cryptocurrency investments, 15% have reported encountering fraudulent schemes, with the percentage rising to 25% for adults 50 or older. Such patterns highlight the urgent need for protective measures and greater public awareness.
How Cryptocurrency ATM Scams Operate
Typically, fraudsters pressure victims into making urgent payments through crypto ATMs. Victims deposit cash into these machines, which convert their money into cryptocurrency and transfer it to fraudsters’ wallets. Due to the irreversible and non-traceable nature of these transactions, victims often realize the scam only after the transfer is complete, making recovery of funds nearly impossible.
Legal and Regulatory Responses
In response to the alarming rise in crypto ATM fraud, several states have enacted or proposed legislation to curb these scams. As of 2025, at least 20 states have drafted or passed laws imposing regulations on crypto ATMs. For instance, Colorado enacted legislation requiring ATM operators to warn customers about fraud risks and implemented transaction limits to reduce victim losses.
Earlier this year, Iowa’s Attorney General filed lawsuits against two of the state’s largest crypto ATM operators, alleging negligence that allowed scammers to defraud residents of more than $20 million, mostly affecting older adults.
On the federal level, Senator Dick Durbin introduced the “Crypto ATM Fraud Prevention Act of 2025,” aiming to establish federal standards to prevent fraud associated with these machines. The bill seeks to impose transaction limits and require greater transparency to protect consumers, particularly vulnerable groups.
Warnings from Financial Authorities
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued advisories encouraging financial institutions to be vigilant in detecting suspicious activities linked to cryptocurrency kiosks. Law enforcement agencies, including the FBI’s Internet Crime Complaint Center, report thousands of complaints involving crypto ATM scams, reflecting the widespread nature of this fraud.
Protecting Consumers
Experts urge consumers, especially older adults, to exercise caution with cryptocurrency ATM transactions. Recognizing the signs of such scams—requests for urgent payments, pressure to use crypto ATMs, and unsolicited investment offers—can help prevent victimization. States and financial institutions continue to develop educational resources and guidance aimed at reducing fraud exposure and promoting safer transaction methods.
Conclusion
Cryptocurrency ATM fraud represents a rapidly escalating threat to American consumers, with older adults bearing the brunt of financial losses. Combined efforts by policymakers, regulators, and law enforcement are underway to mitigate these risks. However, public awareness remains a crucial defense line as the cryptocurrency landscape evolves.