The rise of cryptocurrency has brought with it a surge in crypto ATM fraud, with losses in the United States reaching a staggering $333 million in 2025, marking a 33% increase from the previous year, according to a new report by cybersecurity firm CertiK. The report, shared exclusively with Cointelegraph, highlights the growing sophistication of scam networks, particularly in their use of advanced AI deepfake technology to deceive victims.
Crypto ATM Fraud: A Growing Threat
Crypto ATM fraud is now one of the fastest-growing financial crime categories in the U.S., driven by the speed and pseudonymity of crypto ATMs or ‘kiosks.’ The FBI recorded more than 12,000 complaints between January and November 2025, a 33% increase from the prior year. The United States accounts for 78% of the world’s 45,000 cryptocurrency machines, making it a prime target for scammers.
CertiK notes that the ability to convert cash to crypto in under five minutes with minimal identity verification ‘makes them the lowest-friction extraction channel available to scammers.’ This ease of use, combined with the lack of stringent identity checks, has created a fertile ground for fraud.
Victims and Scammers: A Closer Look
The report reveals a significant ‘attribution gap’ in crypto ATM fraud cases. Because the blockchain only records the operator-to-destination transfer, not the victim’s identity, forensic tracing is extremely difficult without court orders for operator records. This anonymity has made it easier for scammers to evade detection.
Around 86% of the losses involve victims over 60 years old. Older adults are disproportionately vulnerable due to their ‘liquid savings,’ lower crypto literacy, and social isolation. However, younger victims are increasingly falling prey to romance or investment scams, commonly known as ‘pig butchering.’ These scams, along with government impersonation, tech support fraud, ‘grandparent scams,’ and fake fraud recovery offers, are among the five primary tactics used by scammers.
The Role of AI in Escalating Fraud
AI is playing a significant role in the escalation of crypto ATM fraud. According to CertiK, AI-enabled social engineering scams were 4.5 times more profitable than traditional methods in 2025. The integration of ‘real-time deepfake synthetic media’ into scam operations represents a ‘significant near-term escalation.’
‘AI-driven personalization tools enable scammers to scrape social media data and construct hyper-targeted scripts that mirror the specific language, appearance, and communication patterns of the victim’s trusted contacts,’ the report states. This sophisticated use of AI makes it easier for scammers to build trust and manipulate victims into performing voluntary actions at crypto ATMs.
Regulatory Efforts and Future Outlook
The profile of crypto ATM scammers has shifted from independent actors to structured transnational criminal organizations operating with corporate-level divisions of labor. These organizations are industrializing ATM-based extraction at an unprecedented scale, posing a significant challenge to law enforcement and regulatory bodies.
U.S. Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act in February 2025, aiming to introduce safeguards for crypto kiosk users. Wyoming Senator Cynthia Lummis has also expressed hope that crypto market structure legislation will help tackle ATM fraud by punishing bad actors without stifling innovation.
As the crypto industry continues to evolve, the need for robust regulatory frameworks and advanced security measures becomes increasingly critical. The battle against crypto ATM fraud is far from over, and stakeholders must remain vigilant to protect consumers and maintain the integrity of the digital financial ecosystem.
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