According to a study conducted by the US Federal Trade Commission (FTC), monetary losses from crypto ATM fraud have increased tenfold since 2020, exceeding $110 million in 2023.

In the first six months of this year, losses from crypto ATM fraud totaled more than $65 million. During that period, complaints were three times more likely to come from consumers over 60, the FTC says. The average loss suffered by victims of all ages in the first half of the year was $10,000.

“Crypto ATMs, which look like traditional ATMs, are often found at retail locations, gas stations, and other crowded places. Instead of dispensing cash, they accept money in exchange for cryptocurrency. As a result, they are often used by scammers who convince people to deposit cash to so-called ‘protect’ their savings,” the FTC said.

The commission warned that most scammers who come up with schemes using cryptomats pose as government employees or technical support for well-known companies. Fraudsters can come up with different reasons for contacting victims, but they all convince people to urgently withdraw cash from a bank account and transfer these funds through a cryptomat. As soon as the victim scans the QR code provided by the fraudster, the money is credited to the fraudster’s cryptocurrency address, the FTC warned.

“Don’t trust anyone who asks you to use a crypto ATM to buy gift cards, transfer money, protect your funds, or solve a problem. Government agencies and legitimate companies will never do this, and any such requests are from scammers. If you believe it may be legitimate, contact the company instead, but find their number or website yourself. Do not use a phone number you receive from a potential scammer,” the agency warned.

According to recent data from TRM Labs, criminals have laundered at least $160 million through cryptocurrency ATMs since 2019. In response to the rise in digital asset fraud, California officials last fall proposed limiting ATM withdrawals to $1,000 per day.