U.S. regulators are warning consumers about a wave of fraud involving cryptocurrency kiosks and other hard-to-reverse payment methods. On Aug. 26, the Commodity Futures Trading Commission said scammers are using crypto ATMs, unfamiliar apps, gift cards and even couriers to collect payments that become difficult to recover once sent.

The advisory followed new FBI figures showing more than 13,400 cryptocurrency kiosk complaints in 2025 and over $388 million in reported losses. The bureau said complaint volumes rose 23% from 2024, while reported losses climbed 58%, though it also cautioned that some cases counted under kiosk complaints involved other payment methods as well.

Why crypto kiosks are attractive to scammers

A cryptocurrency kiosk differs from a traditional bank ATM because it converts deposited cash into digital assets and sends them to a wallet address chosen during the transaction. Once the transfer is confirmed on-chain, it typically cannot be reversed, a feature the CFTC said leaves victims with little recourse after the money is sent.

According to the agency, scammers often stay on the phone while victims complete the deposit. They may supply a wallet address or QR code, tell people to split cash across several machines, and coach them on what to say if a kiosk operator, bank employee or relative starts asking questions.

Impersonation and urgency remain central tactics

The CFTC said fraudsters commonly pose as representatives of government agencies, banks, investment firms, utility companies or technical support services. Their pitch is designed to create panic, with claims that a consumer’s identity, computer or savings account is under immediate threat.

That pressure can push people into using payment channels that are fast but difficult to unwind. The agency’s warning covered not only crypto ATMs but also unfamiliar applications, gift cards and couriers, all of which can be used to move funds beyond easy recovery.

Older Americans accounted for most reported losses

The FBI data highlighted a pronounced impact on older adults. More than half of cryptocurrency kiosk complaints involved people over 50, and that group reported losses exceeding $302 million during 2025.

The bureau’s more detailed breakdown listed about 13,460 kiosk-related complaints for the year. People aged 60 or older filed 6,188 of those complaints and reported more than $257 million in losses. Separate Federal Trade Commission research cited in the report found that older victims often lose larger sums in business and government impersonation scams, and that cryptocurrency appeared in 33% of 2024 reports from older adults who lost at least $10,000 in those schemes. The FTC said most crypto references in those cases mentioned Bitcoin ATMs.

States and agencies are responding with tighter controls

Federal agencies have paired public warnings with compliance guidance for operators. FinCEN has told financial institutions and kiosk operators to watch for signs of fraud and to file suspicious activity reports when required.

At the state level, responses vary. Arizona introduced transaction limits, fraud warnings and reimbursement rules under a crypto ATM refund law that returned $171,332 to 35 scam victims. Minnesota took a stricter route, implementing a crypto ATM ban after nearly $1 million in reported losses. Other states have opted for measures such as transaction caps, mandatory receipts, customer-service requirements and holding periods rather than outright bans.

What victims are being told to do next

The CFTC said consumers should end unsolicited calls or messages and contact the organization in question through phone numbers or websites they find independently, rather than using details provided by the caller.

If a transaction has already happened, the agency advises preserving receipts, wallet addresses, QR codes, transaction hashes, message records and the machine’s location. Victims are urged to contact the kiosk operator and local law enforcement quickly and to submit reports through the CFTC complaint portal and the FBI’s IC3 website. The agencies noted that tracing and recovery are not guaranteed, but early reporting can still help investigators follow the funds.

Source: crypto.news