The United States Department of the Treasury has warned that crypto ATMs are increasingly being used by scammers and criminals to steal money from victims.
The warning comes from a new report submitted to Congress under the GENIUS Act, which focuses on risks in the growing digital asset industry.
According to the report, criminals are using crypto ATMs to pressure victims into quickly sending money. These machines allow people to convert cash into digital assets like Bitcoin.
Data cited in the report shows the Federal Bureau of Investigation received more than 10,900 complaints about crypto ATM scams in 2024. Total reported losses reached around $246.7 million.
Officials say scammers often tell victims to deposit cash into a crypto ATM and send the funds to wallets controlled by fraudsters. These scams are commonly linked to impersonation schemes or fake investment opportunities.
The report also notes that older individuals are frequently targeted, which reflects a broader trend seen in financial fraud cases involving digital assets.
Beyond crypto ATMs, the Treasury also raised concerns about other tools that could help criminals hide transactions. These include crypto mixers, decentralized finance platforms, and cross-chain bridges that can move funds between blockchains.
At the same time, the report says new technologies could help fight these crimes. Tools such as artificial intelligence, blockchain analytics, and digital identity systems may improve anti-money-laundering monitoring.
Lawmakers in the United States are now debating new regulations for the crypto industry, including measures under the GENIUS Act aimed at improving oversight while still encouraging innovation.
