The FBI is sounding the alarm on a sharp rise in cryptocurrency scams tied to Bitcoin ATMs, warning that fraudulent activity around kiosks is “clear and constant” and “not slowing down,” according to ABC News’ summary of the bureau’s latest figures. The numbers are stark. Reported losses from crypto-related scams climbed to roughly $250 million in 2024—more than double the prior year—and had risen further to $333.5 million by November 2025. That surge comes as the U.S. now hosts more than 45,000 Bitcoin ATMs, machines that let users convert cash to crypto and send it to wallets anywhere in the world. Once funds are sent from these kiosks, experts say recovery is rarely possible, making the machines an attractive tool for fraudsters. “Requesting crypto is now the No. 1 preferred method of criminals,” said Amy Nofziger, director of fraud victim support at AARP, in an October interview with ABC News. “It is a huge problem.” Regulators and prosecutors are responding. In September, the attorney general’s office for Washington, D.C., sued Athena Bitcoin, a major ATM operator, alleging the company kept “hundreds of thousands of dollars in undisclosed fees on the backs of scam victims.” The suit claims a startling 93% of transactions through Athena machines in the district were linked to outright fraud, and that victims skewed elderly—the median age was 71. Athena Bitcoin has rejected the allegations, saying it has “robust safeguards” including clear instructions and consumer education, and arguing it cannot control users’ decisions—“just as a bank isn’t held responsible if someone willingly sends funds to someone else,” the company said. Consumer advocates want tougher rules. AARP has urged stricter oversight of Bitcoin ATMs and floated protections such as daily deposit caps to limit losses. At least 17 states have already passed laws regulating these kiosks, and some local governments are moving to ban them outright. New Jersey state Senator Paul Moriarty, who sponsored a bill to prohibit Bitcoin ATMs in his state, called the machines “nothing more than conduits for fraud and criminal activity.” Industry players counter that scams, while serious, make up only a small share of total transactions. Firms such as Bitcoin Depot have defended their networks and point to broader user demand for accessible on‑ramps into crypto. Market snapshot: Bitcoin was trading around $88,613 at the time of writing—up about 1.5% over 24 hours and roughly 2% on the week—but it has so far been unable to clear and hold above the key $90,000 resistance level. Takeaway: The proliferation of Bitcoin ATMs has widened retail access to crypto but has also provided scammers with a fast, hard‑to‑reverse path to steal cash. Regulators, consumer groups and courts are increasingly confronting the problem, while operators push back—leaving policy, liability and consumer protection debates unresolved as losses mount. Read more AI-generated news on: undefined/news

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