In front of cryptocurrency ATMs, the elderly become precise targets for scammers.
Written by: Cameron Fozi, Chloe Rosenberg, and Reeno Hashimoto, The New York Times
Translated by: Chopper, Foresight News
Cryptocurrency ATMs, which are found in convenience stores and gas stations, appear to be convenient cash-to-coin terminals, but in reality, they have become traps for scammers targeting the elderly. Behind the disappearing deposits lies a series of meticulously designed scams.
Mary Handeland, a real estate agent from Grafton, Wisconsin, met a match on a dating app last year. The person claimed to be Mike, an engineer for a defense contractor in Texas.
After two months of texting and phone calls, 71-year-old Handeland received a confession of love from Mike. Shortly after, Mike asked her to lend him money.
Handeland was instructed to deposit cash into a device called a "cryptocurrency ATM." These self-service terminals, commonly found in grocery stores, gas stations, and tobacco shops, resemble traditional ATMs but can convert cash into cryptocurrency.
Since October of last year, Handeland deposited $98,300 into these machines through 19 transactions. Ultimately, all the money vanished, and Mike disappeared, a persona that was entirely fictional from the start.
"I still don't know what happened to me at that time," Handeland said. "It felt like being manipulated, as if I was caught in some kind of whirlpool."
Handeland's experience has brought cryptocurrency ATMs into the spotlight. These devices have rapidly proliferated across the U.S., but they have come under close scrutiny for becoming tools of fraud. According to data from the U.S. Department of the Treasury's Financial Crimes Enforcement Network, the number of operational cryptocurrency ATMs has reached at least 28,000, more than double the number of Wells Fargo ATMs.
Mary Handeland deposited $98,300 into cryptocurrency ATMs through 19 transactions, all of which ultimately disappeared.
These self-service terminals operated by companies like Bitcoin Depot, CoinFlip, and Athena Bitcoin help people convert cash into cryptocurrency in physical locations. After users deposit cash, the operators transfer the corresponding amount of cryptocurrency to the user's cryptocurrency account and charge a transaction fee.
However, law enforcement agencies state that these self-service terminals have become breeding grounds for financial crime. Last year, the FBI's Internet Crime Complaint Center received nearly 11,000 complaints related to these devices, with total losses amounting to $246.7 million. The FBI estimates that in the first seven months of this year, losses from scams involving cryptocurrency ATMs were approximately $240 million.
The cryptocurrency industry has long been mired in money laundering and fraud scandals, with ATM-related crimes being just one facet. However, Aidan Larkin, CEO of asset tracking company Asset Reality, points out that the uniqueness of these devices lies in their accessibility and their targeting of vulnerable groups.
"For victims with lower technical skills and a lack of experience using technology products, cryptocurrency ATMs are the easiest way for scammers to extract their assets," he said.
Data from cryptocurrency analytics firm TRM Labs shows that from 2024 to the first half of 2025, the proportion of illegal transactions involving cryptocurrency ATMs is more than 17 times the average level of the entire cryptocurrency industry.
Since the birth of Bitcoin in 2009, these devices have started appearing in cafes, convenience stores, and gas stations. Bitcoin Depot was founded in 2016, when founder Brandon Mintz had just graduated from college. He stated that the original intention of starting the company was to build a network of cryptocurrency ATMs to allow those without bank accounts or who found it difficult to purchase cryptocurrency through other channels to access Bitcoin.
A Bitcoin ATM in a convenience store in Miami. According to data from the U.S. Department of the Treasury, cryptocurrency ATM operators are located in at least 28,000 locations.
In 2023, Bitcoin Depot went public through a merger with a special purpose acquisition company (SPAC). The company claims that it operates over 9,000 ATMs, making it the largest cryptocurrency ATM network in North America. Since its inception, the company has processed 4 million transactions, totaling $3.3 billion.
However, law enforcement states that once cash is converted into cryptocurrency through these machines, scammers can transfer that cryptocurrency to jurisdictions beyond the reach of U.S. law enforcement, making it nearly impossible for victims to recover their losses.
California, Illinois, and several other states have begun to restrict the use of cryptocurrency ATMs, with some states setting limits on transaction amounts and fees charged by operators.
When California discussed whether to restrict cryptocurrency ATMs in 2023, then-president of the California Police Chiefs Association, Alexander Gammelgard, warned of the dangers of these devices in a letter to state legislators, supporting related regulatory proposals.
In his letter, he wrote: "These devices enable international criminal organizations to steal funds from California residents without any involvement from banks or financial institutions, which could help law enforcement capture criminals and recover stolen property."
That same year, California passed a series of regulatory measures limiting individual daily transaction amounts through cryptocurrency ATMs to $1,000, with a fee cap set at $5 or 15% of the transaction amount (whichever is higher).
Many cryptocurrency ATM operators claim that fraud-related transactions account for only a tiny proportion. Chris Ryan, the chief legal officer of Bitcoin Depot, told Texas legislators this year that fraudulent transactions account for 2% to 3% of the company's total transactions in the U.S. The company stated in a release that protecting consumers is its top priority and that it has one of the most comprehensive compliance programs in the industry.
Byte Federal, which operates over 1,200 cryptocurrency ATMs, stated that from July 2024 to the first half of 2025, the proportion of transactions involving fraud victims was only 1.2%. The company's CEO, Paul Tarantino, said that for registered users aged 60 and above, the company proactively calls to remind them of potential fraud risks, successfully preventing over 80% of suspicious transactions.
Byte Federal's CEO Paul Tarantino stated that the company calls to remind customers aged 60 and above to be aware of potential fraud when they register.
Many cryptocurrency ATM operators have also posted fraud warnings on their devices, requiring users to confirm that the funds they deposit are going into their own cryptocurrency accounts, not accounts managed by others. They also state that they will cooperate with law enforcement.
Sung Choi, COO of Coinme, a company that provides software support for ATMs, stated that the Seattle-based company is continuously improving its ability to identify and prevent potential fraudulent transactions, but scammers still find ways to circumvent anti-fraud measures.
"No matter how hard we try, scammers are quite sophisticated, and they always seem to be one step ahead," Sung Choi said.
Athena Bitcoin stated that it strives to prevent fraud but cannot control users' decisions, just as banks are not responsible for users withdrawing money and giving it to others. CoinFlip claims it is committed to anti-fraud efforts and has high standards for compliance and transparency.
For victims who are induced to use these devices, the consequences can be devastating. In 2022, Connie Ruth Morris, a retired nurse from Amarillo, Texas, joined an online fan group for Brazilian actor and singer Daniel Boaventura and began receiving text messages from someone claiming to be Boaventura.
After several days of texting, the person confessed love to the 72-year-old Morris and asked her to transfer money through a cryptocurrency ATM to help him pay off personal debts so they could jointly purchase property.
Morris, who had been married for over 45 years, agreed to the request. She said that over about six months, she deposited approximately $300,000 through cryptocurrency ATMs and also sent four iPhones and a $200 gift card.
In May 2023, Morris informed her husband that she was leaving him to be with Boaventura. Her son told her that she had been scammed.
At that time, most of the family's savings had vanished. Morris and her husband later divorced.
"I was so brainwashed that I was completely out of touch with reality," she said. "I used to be able to help my son and grandchildren, but now I can't."
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