As of mid-2026, thirty states have passed regulations for crypto kiosks (aka crypto ATMs). Why? Because criminals love the hard-to-trace currency, and there are tens of thousands of kiosks throughout the country to facilitate their scams. Protect yourself by knowing what the Department of Financial Protections & Innovations warns: “No legitimate organization will ever ask you to deposit cash into a crypto ATM to resolve an issue or protect your money.”
A major operator of crypto kiosks in the United States, Bitcoin Depot, closed down in May 2026—a move the company said was prompted by new anti-scam regulations passed in thirty states.
But before cuing the violins, millions were lost in crypto kiosks scams as spelled out by the FBI’s latest Internet Crime report.
And while Bitcoin Depot operated more than 9,000 crypto ATMs throughout the U.S., Canada, and Australia, tens of thousands more run by other companies remain in grocery and convenience stores, gas stations, laundromats, restaurants, and liquor shops across the country.
But what are these things? How do they work? Why do scammers love them—and how can you avoid losing your money to one?
The cost of crypto kiosk scams
13,460+ victims said a scammer directed them to use a crypto kiosk to send money.
Those scams led to $382 million in losses, about $1 million a day.
Reports of crypto kiosk scams rose 23 percent from 2024 to 2025.
The amount stolen increased even faster, jumping 58 percent.
Source: FBI’s Internet Crime Complaint Center, 2025
What is a crypto kiosk?
At first pass, a crypto kiosk or crypto ATM looks like a regular ATM (or a cash-for-coins machine).
But regular ATMs operate solely with cash, a currency that is closely backed and regulated by the government. Crypto kiosks, on the other hand, handle transactions involving crypto tokens, which are unbacked, intangible digital assets used in place of traditional money.
Unlike at a run-of-the-mill ATM, at a crypto kiosk, a person scans a QR code or enters a phone number, types a texted verification code, and feeds cash (or a debit card) into the machine.
The value of the bills gets converted into virtual crypto tokens. Those tokens are “deposited” into the digital wallet associated with the QR code or phone number.
Crypto account numbers in digital wallets are disguised via cryptography. It’s only when someone cashes out again that they can be associated with the transaction and the account.
However, because crypto transactions—including the opening and closing of accounts— can occur across jurisdictions and in a flash, scammers can quickly launder the currency through mostly unregulated accounts.
How are crypto kiosks used in scams?
Allstate Identity Protection members who were victimized by scammers using crypto kiosks told our customer care team that these crimes typically started over the phone. Many reported receiving a call from a convincing and insistent person posing as a law enforcement officer or a bank representative. In these cases, the caller claimed there was an issue requiring the victim’s immediate attention.
Here’s the catch: Crypto kiosk scammers typically don’t even mention the buzzword “crypto” or discuss converting cash into tokens. Instead, they talk about depositing the money into an “approved account.”
To resolve the “issue”, the impersonator said the victim must withdraw cash from a traditional ATM and deposit it into what they call a “secure,” “government-sanctioned,” “government-secured,” or “protected” kiosk. H4: TIP
One woman told AARP that she spent so much time feeding cash into one of the machines that shopworkers got her a chair to sit in. Before long, she said, she’d given the scammers $11,000.
Her scammers had posed as federal agents supposedly protecting her bank accounts. When the kiosk screen flashed warnings, the scammer told her to ignore them. They coached her through every step and were so convincing and manipulative that she did.
How to spot a crypto kiosk scam
if you remember nothing else in this article, remember what the Department of Financial Protection & Innovation says: “No legitimate organization will ever ask you to deposit cash into a crypto ATM to resolve an issue or protect your money.”
Also consider this: the Federal Deposit Insurance Corporation insures cash deposits at banks, and countless laws and regulations govern these financial institutions and regular ATMs. But cryptocurrency isn’t backed or overseen like that.
Other things to watch out for include unsolicited callers who:
Contact you with an urgent, dire issue that comes out of nowhere
Tell you to withdraw large amounts of cash to pay for the problem to go away
Text you a QR code to scan at a crypto kiosk or tell you a phone number to enter on its touchscreen
Ask you to tell them any security codes the machine generates to confirm you are transferring the cash into the right account
Common impersonation scams associated with crypto kiosks
Fake government officials that pretend there’s an issue around jury duty, immigration, or taxes
Fake law enforcement officers that pretend there’s a warrant or pending warrant or outstanding tickets
Fake tech support that warns there’s a virus or update associated with your devices
Fake investors that say you’ve been selected for a special opportunity
Fake bank representatives that claim there’s a problem with your account
What to do if you've sent money through a crypto kiosk scam
Hang up, record the number, block the caller, and then report the scam with the following groups:
If you're an Allstate Identity Protection member, we're here to help. Our specialists can walk you through important reporting steps and help you understand your options.
Unfortunately, because crypto isn’t protected by the FDIC, recovering all funds lost to scams may be difficult. That said, select Allstate plans now include scam and cybercrime reimbursement benefits.
