What seniors need to know about crypto bank machines and scams
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If you’ve noticed new glowing kiosks near the checkout line at your local grocery store or gas station, you’re not alone.
These machines, called Bitcoin ATMs or crypto bank machines, let people insert cash and buy cryptocurrency in just a few minutes.
For some, the process seems like a quick way to enter the world of digital money without needing a bank account or advanced tech skills.
But behind the flashing screens, these machines have become a tool for fraud—and older adults are paying the price.
Regulators and advocates are now sounding the alarm as scams tied to these machines continue to rise.
The number of Bitcoin ATMs in the United States has grown rapidly, with more than 80% of the world’s machines now located here.
They promise convenience and speed—cash in, crypto out. But scammers see them as the perfect way to steal money.
According to the Federal Trade Commission, fraud losses linked to these machines jumped from $11 million in 2020 to over $110 million in 2023, with the majority of victims over 60. In the first half of 2024 alone, reported losses reached $65 million.
Fraudsters typically pose as government officials, utility workers, or even family members in crisis.
They create a sense of urgency—claiming your Social Security is frozen, your computer is hacked, or your grandchild is in danger.
Victims are then directed to the nearest Bitcoin ATM, where they deposit cash and scan a QR code.
That code sends money directly to the scammer’s digital wallet.
The transfer is instant and irreversible, leaving no way to get funds back once they’re gone.
Some of the companies operating these machines are now facing lawsuits.
In Washington, DC, Attorney General Brian Schwalb filed a case against Athena Bitcoin, one of the largest operators, accusing it of knowingly allowing scams and profiting from hidden fees.
The lawsuit claims that 93% of deposits into Athena’s DC machines were tied to fraud.
Similar cases have been filed in Iowa and New Jersey against other operators like Bitcoin Depot and CoinFlip, with allegations of charging fees as high as 23% and failing to protect consumers.
While the companies deny wrongdoing and point to their safety protocols, consumer advocates argue that confusing prompts and disclaimers do little to stop scams in progress.
Seniors are often targeted because they may have more savings, less experience with new technology, and a higher level of trust in authority figures.
Scammers rely on confusion and urgency, making it difficult for victims to pause and question what’s happening.
Adding to the problem, regulations vary widely across states.
While places like New York have strict rules for operators, others have almost no oversight, leaving large gaps in consumer protection.
Some states, including Massachusetts, are considering stronger regulations, such as requiring refunds for scam victims and capping transaction amounts.
The AARP is supporting these efforts to shield older Americans from further losses.
In the meantime, awareness remains the best defense.
Tips to stay safe:
Bitcoin ATMs may seem like an easy entry point into digital finance, but right now, they’re being exploited by scammers who know how to manipulate urgency and trust.
For seniors especially, staying informed and cautious is key.
Until stronger protections are in place, the best safeguard is awareness and open conversations with loved ones.
Read next: A surge in scam calls has Americans on edge—but the real threat may be harder to detect
Have you or someone you know been approached by a scam involving a Bitcoin ATM? What advice would you give others to avoid becoming a victim? Share your thoughts in the comments below!
These machines, called Bitcoin ATMs or crypto bank machines, let people insert cash and buy cryptocurrency in just a few minutes.
For some, the process seems like a quick way to enter the world of digital money without needing a bank account or advanced tech skills.
But behind the flashing screens, these machines have become a tool for fraud—and older adults are paying the price.
Regulators and advocates are now sounding the alarm as scams tied to these machines continue to rise.
Bitcoin ATMs are becoming common across the US, but experts warn they’re also a growing tool for scammers targeting older adults. Image Source: Pexels / David McBee.
Why Bitcoin ATMs are attracting scammers
The number of Bitcoin ATMs in the United States has grown rapidly, with more than 80% of the world’s machines now located here.
They promise convenience and speed—cash in, crypto out. But scammers see them as the perfect way to steal money.
According to the Federal Trade Commission, fraud losses linked to these machines jumped from $11 million in 2020 to over $110 million in 2023, with the majority of victims over 60. In the first half of 2024 alone, reported losses reached $65 million.
Also read: Paws off our savings! The crypto scam preying on vulnerable seniors
How the scams usually work
Fraudsters typically pose as government officials, utility workers, or even family members in crisis.
They create a sense of urgency—claiming your Social Security is frozen, your computer is hacked, or your grandchild is in danger.
Victims are then directed to the nearest Bitcoin ATM, where they deposit cash and scan a QR code.
That code sends money directly to the scammer’s digital wallet.
The transfer is instant and irreversible, leaving no way to get funds back once they’re gone.
Also read: Falling for the “transfer it to protect it” scam? FTC warns this scheme is targeting older Americans
Companies under scrutiny
Some of the companies operating these machines are now facing lawsuits.
In Washington, DC, Attorney General Brian Schwalb filed a case against Athena Bitcoin, one of the largest operators, accusing it of knowingly allowing scams and profiting from hidden fees.
The lawsuit claims that 93% of deposits into Athena’s DC machines were tied to fraud.
Similar cases have been filed in Iowa and New Jersey against other operators like Bitcoin Depot and CoinFlip, with allegations of charging fees as high as 23% and failing to protect consumers.
While the companies deny wrongdoing and point to their safety protocols, consumer advocates argue that confusing prompts and disclaimers do little to stop scams in progress.
Also read: She lost $17,500 to a bitcoin ATM scam—what happened and how to stay safe
Why older adults are most at risk
Seniors are often targeted because they may have more savings, less experience with new technology, and a higher level of trust in authority figures.
Scammers rely on confusion and urgency, making it difficult for victims to pause and question what’s happening.
Adding to the problem, regulations vary widely across states.
While places like New York have strict rules for operators, others have almost no oversight, leaving large gaps in consumer protection.
Also read: Scammers exploit public confusion around tariffs, immigration, and drug policy
What’s being done—and how to protect yourself
Some states, including Massachusetts, are considering stronger regulations, such as requiring refunds for scam victims and capping transaction amounts.
The AARP is supporting these efforts to shield older Americans from further losses.
In the meantime, awareness remains the best defense.
Tips to stay safe:
- Be cautious of urgent payment requests. No legitimate government agency or business will demand Bitcoin payments.
- Verify before acting. If you receive a suspicious call, hang up and contact the company directly using a trusted number.
- Talk it over. Share what’s happening with a family member or trusted friend before sending money.
- Look for red flags. Secrecy, threats, or demands for immediate payment are common scam tactics.
- Report it. Contact the FTC, your state attorney general, or local law enforcement if you’ve been targeted.
Bitcoin ATMs may seem like an easy entry point into digital finance, but right now, they’re being exploited by scammers who know how to manipulate urgency and trust.
For seniors especially, staying informed and cautious is key.
Until stronger protections are in place, the best safeguard is awareness and open conversations with loved ones.
Read next: A surge in scam calls has Americans on edge—but the real threat may be harder to detect
Have you or someone you know been approached by a scam involving a Bitcoin ATM? What advice would you give others to avoid becoming a victim? Share your thoughts in the comments below!
