CFTC warns consumers over rising crypto ATM fraud

Scammers are increasingly directing victims to use crypto ATMs and other unusual payment channels, where transactions can be difficult to trace and, in the case of crypto transfers, impossible to reverse, the CFTC warned in a statement.

According to the FBI’s Internet Crime Complaint Center, scams involving crypto ATMs resulted in more than $388 million in reported losses during 2025, up 58% from the prior year. The CFTC said the actual amount could be greater because victims may not report their losses.

Fraudsters often impersonate trusted institutions, including banks, investment firms, government agencies and tech-support companies, and create a sense of urgency by claiming that a victim’s finances or identity are at risk. Victims may then be instructed to withdraw cash and deposit it into a crypto ATM using a QR code or wallet address supplied by the scammer.

The CFTC said the same tactics could involve fake trading platforms, fraudulent apps, gift cards, wire transfers, unfamiliar payment channels or couriers collecting cash and precious metals. Scammers may remain on the phone throughout the transaction, dictate what victims should say, demand secrecy or request remote access to their devices.

The agency emphasized that legitimate government agencies, financial institutions and reputable companies will not instruct customers to move money through crypto ATMs, gift cards or couriers. Consumers should stop and independently verify suspicious requests through official contact information rather than using details supplied by the caller or message.

The CFTC also advised consumers to avoid sending funds to unfamiliar crypto addresses, noting that once a transfer is made, it cannot be reversed regardless of the amount. People who receive unusual payment instructions should consider speaking with a trusted family member, friend, financial professional or law enforcement officer before proceeding.