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Bitcoin ATM Scams

5/7/2025

What They Are and How to Protect Yourself

Cryptocurrency is becoming more accessible to everyday consumers. One of the most visible signs of this shift is the rise of Bitcoin ATMs—machines that allow people to buy or sell Bitcoin using cash. While they may seem like a fast and easy way to get involved with crypto, Bitcoin ATMs have also become a favorite tool for scammers. Michigan Attorney General Dana Nessel recently issued a consumer alert, warning residents about a surge in scams involving these machines. Here's what you need to know.

What is a Bitcoin ATM?

Bitcoin ATMs (also called BTMs) are machines that allow people to buy or sell Bitcoin (and sometimes other cryptocurrencies) using cash or a debit card, much like how a regular ATM lets you withdraw or deposit money into a bank account.
But there are important differences from traditional ATMs:
  • They’re not connected to your credit union or other financial institution account.
  • They often charge very high fees.
  • There is zero fraud protection. Once the crypto is sent, it's nearly impossible to recover.
  • Bitcoin ATMs operate with minimal regulation, which is why scammers often exploit them.

Here’s how Bitcoin ATM Scams work:

Scammers pose as Apple, Google, Amazon, your financial institution, or even law enforcement, claiming your accounts are compromised. They pressure you into withdrawing cash and depositing it into a Bitcoin ATM—once you do, the money is gone for good.

How to Spot & Avoid a Bitcoin ATM Scam

Stay one step ahead with these tips:
  • No legitimate company or agency will ever ask you to send money via Bitcoin ATM.
  • Beware of urgency—scammers will pressure you to act without thinking.
  • Don’t trust caller ID—phone numbers can be spoofed.
  • Verify any claims by calling the company directly.
  • Never download unknown software or give remote access to your devices.
  • Speak with your credit union or financial institution before making unusual or large withdrawals.
  • Report any suspicious requests or calls to authorities immediately.
As Bitcoin and crypto technology evolve, so do the tactics scammers use. Always verify unexpected financial requests and never send money through a Bitcoin ATM unless you're 100% certain of the recipient.


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