SCAM STOPPER: Attorney General Ellison shares how to avoid cryptocurrency ATM scams
December 19, 2025 (SAINT PAUL) — Today, Attorney General Keith Ellison shared information on how to avoid cryptocurrency ATM scams. The warning is part of the Attorney General’s Scam Stopper series, aiming to help protect Minnesota consumers from common scams.
"The spread of Cryptocurrency ATMs has me extremely concerned," said Attorney General Keith Ellison. “While these ATMs are not scams themselves, many scammers trick their targets into sending money via cryptocurrency ATM because those transactions are virtually impossible to trace. If anyone asks you to send them money via a cryptocurrency ATM, it is extremely likely you are talking to a scammer. And a government agency will never ask you to pay for anything through a cryptocurrency ATM. I highly recommend avoiding cryptocurrency ATMs entirely.”
Attorney General Ellison's Office has received dozens of reports over the years from scam victims who sent money using cryptocurrency ATMs. Additionally, Federal Trade Commission (FTC) data shows an explosion in reported losses to scams where money is sent using cryptocurrency ATMs: in 2020, losses using cryptocurrency ATMs nationwide were reported to be around $12 million, but in just the first half of 2025, those reported losses were a staggering $250 million. Additionally, cryptocurrency ATMs have an extremely high reported median loss: overall the median scam loss reported to the FTC in 2024 was $497, but for cryptocurrency ATMs, the median reported loss was $10000.
This Scam Stopper will detail how cryptocurrency ATMs are used by scammers, then cover the basics of cryptocurrencies, cryptocurrency ATMs, and how to report a cryptocurrency ATM scam.
What do scams involving cryptocurrency ATMs look like?
While not scams in and of themselves, cryptocurrency ATMs are frequently used to facilitate the sending of money from a scam victim to the scammer. This is due to the fact that, as explained below, it is exceedingly difficult, if not impossible, to undo Bitcoin transactions or track money sent via Bitcoin.
Scammers in every situation want you to act as quickly as possible, and will usually appeal to fear, greed, or romance. You might get a call from someone impersonating the IRS stating that you have an outstanding tax bill, and if you do not immediately pay the bill by sending money through a cryptocurrency ATM, you will be arrested. They might tell you that you have won a sweepstakes and are due to be paid millions, but need to send the payment for taxes at a cryptocurrency ATM. Someone may reach out via social media and express a romantic interest, then ask you to send money through a cryptocurrency ATM so that they can buy a plane ticket to come visit you. In all of the cases, there are sticks and carrots, but they are all an illusion crafted to get a victim to send as much money as possible in as short a time as possible.
What is cryptocurrency?
Cryptocurrency is digital currency that exists outside of government regulation or bank oversight. Examples include Bitcoin, Ethereum, Dogecoin, and many others. There are also “stable coins”, which hold the value of a government issued currency, like Tether and USDC, which hold the value of the US Dollar. Transactions with all cryptocurrencies are recorded on public ledgers called “blockchains.”
What is a blockchain?
A blockchain is like a shared digital notebook where every transaction ever made using a specific cryptocurrency is recorded. Once transactions are recorded, they cannot be altered. The information is all public, so any individual can see every single transaction recorded on the blockchain.
Where and how is cryptocurrency stored?
Cryptocurrency is stored is stored in a “crypto wallet,” which is like a piggy bank for your crypto. Your wallet has an account number that is visible on the blockchain, called a “Public Key,” and if you send crypto to or from your wallet, it is recorded on the blockchain. Your wallet also has a secret password called a “Private Key.” Crypto wallets largely fall into two categories, “cold” and “hot.” Cold wallets are not connected to the internet, providing a higher level of security. Hot wallets are connected to the internet, and while they might not be as secure as cold wallets, they are generally easier to set up and use and allow for faster transactions and more convenience.
What are cryptocurrency ATMs?
Cryptocurrency ATMs are kiosks where individuals can use cash to buy cryptocurrency. They are often located in gas stations and convenience stores.
How do cryptocurrency ATMs work?
To use a cryptocurrency ATM, you must already have an account with the network the machine is connected with, or you must create a new account. After you have an account, you can deposit cash to convert into your cryptocurrency of choice and deposit it into your crypto wallet. Once the cryptocurrency is in your wallet, it can be sent to other wallets or held.
Why do cryptocurrency ATMs only allow transactions up to $2000 per day for new customers?
Largely due to scams. On August 1, 2024, a new statute went into effect that set the $2000 limit for each new customer of a virtual currency kiosk, required companies to issue refunds to new customers for all transactions made in the first 72 hours of use of the kiosk if they were defrauded, and required new types of disclosures. These changes were made because scammers have started pushing their victims to cryptocurrency ATMs to send them money. Cryptocurrency is preferred by scammers because unwinding transactions is nearly impossible due to the inalterability of the blockchain, and tracking the money after it is sent is exceedingly difficult. While there is a public record of the transactions available, wallets are not required to be registered to any individual by name. You may be able to see the destination crypto wallet address, but there is no public registry of who owns which wallet.
Are there legitimate uses for cryptocurrency ATMs?
A lawsuit filed by the Washington DC Attorney General in September 2025 alleges that 93% of all cryptocurrency ATM interactions in the district were the direct result of scams. While data like this is not available for Minnesota, and there’s no consensus on what the percentages look like nationwide, cryptocurrency ATMs are used in hundreds or thousands of scams daily nationwide, and due to the nature of blockchain interactions, irreversible in most cases.
Additionally, if you are interested in cryptocurrency investment, there are reputable platforms online that you can use to invest with significantly lower fees. A $2000 cash deposit into a cryptocurrency ATM could give you between $1400-$1600 in your cryptocurrency of choice, with the remainder going to cover fees charged by the owner of the cryptocurrency ATM. On a reputable cryptocurrency platform, your fee totals for a $2000 crypto purchase could be between $30-$40.
What should I do if I or somebody that I know lost money to a cryptocurrency ATM scam?
As previously mentioned, if you created a new account with a cryptocurrency ATM and lost money to a scam, you are entitled to a refund for all transactions made within the first 72 hours of the account being created, but you must act quickly. Under the law, a “new account” is considered an account created within the last 72 hours. To claim a refund under the law, within 14 days of the transaction, you must notify the cryptocurrency ATM operator and a government or law enforcement agency of the fraudulent nature of the transactions.
Oftentimes, scammers will instruct new users of cryptocurrency ATMs to use already established accounts to commit the scams.
It is still appropriate to report scams using established accounts to a government or law enforcement agency, as well as your financial institutions especially if you have shared any personal information with the scammers.
What government agencies can I report a cryptocurrency ATM scam to?
If you were scammed, you are the victim of a crime, and crimes should be reported to local law enforcement or the county sheriff where you live.
In Minnesota, cryptocurrency ATMs, or “Virtual Currency Kiosks” as they are referred to in statute, are regulated by the Minnesota Department of Commerce (DOC). In any fraudulent cryptocurrency ATM transaction, we encourage you to make a report with the DOC, who can take enforcement action against a cryptocurrency ATM operator who does not comply with the law. You can reach the DOC as follows:
Minnesota Department of Commerce Enforcement Division
https://mn.gov/commerce/consumer/file-a-complaint/
(to file a complaint online)
consumer.protection@state.mn.us
(651) 539-1600
The Minnesota Attorney General’s Office is the chief law enforcement office in the state and has the ability to investigate violations of Minnesota consumer protection statutes. While we do not have a role in criminal investigation except in certain specific situations, we are interested in hearing from victims of scams. Written complaints are most helpful to this Office, and you can submit the complaint on our website, or give us a call so that we can mail you a form:
Office of Minnesota Attorney General Keith Ellison
445 Minnesota Street, Suite 600
St. Paul, MN 55101
(651) 296-3353 (Twin Cities Calling Area)
(800) 657-3787 (Outside the Twin Cities)
(800) 627-3529 (Minnesota Relay)
The Federal Trade Commission (FTC) is a federal agency with broad consumer protection authority, and it also compiles information about scams and scam victims to track what’s happening with scams in the United States. You may contact the FTC as follows:
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
(202) 326-2222
Reportfraud.ftc.gov
Additionally, you can make a report with the Internet Crime Complaint Center at IC3.gov, which is a central hub for reporting cybercrime, and is run by the Federal Bureau of Investigation.
