Cryptocurrency ATMs are becoming a growing target for scammers, and one North Carolina woman’s devastating experience highlights why lawmakers are demanding stronger consumer protections.
According to a recent report from WRAL, a Johnston County woman lost her entire savings after scammers impersonating law enforcement convinced her to deposit thousands of dollars into a cryptocurrency ATM. The callers claimed she needed to pay money to secure her release, then demanded another $4,000. When she said she could not pay, they ended the call, leaving her to realize she had been defrauded. Her case is part of a much larger problem involving criminals who exploit fear and urgency to pressure victims into sending cryptocurrency. Read the original WRAL report
The scale of the problem is alarming. The FBI received 13,460 complaints involving cryptocurrency kiosks in 2025, with reported losses totaling nearly $389 million. These machines, often found in gas stations and convenience stores, allow customers to convert cash into cryptocurrency and send it to digital wallets. Once the money reaches a scammer, recovering it can be extremely difficult because cryptocurrency transactions are generally irreversible. FBI cryptocurrency kiosk fraud statistics
North Carolina is responding with House Bill 920, which introduces new rules for cryptocurrency kiosk operators beginning January 1, 2027. The law requires licensing, stronger fraud warnings, transaction limits, customer support and certain refunds when fraudulent transactions meet the law’s requirements. It also mandates a 48-hour hold on transactions for qualifying new customers. Meanwhile, North Carolina Attorney General Jeff Jackson confirmed that an investigation into cryptocurrency kiosk companies is underway, raising further questions about how the industry protects consumers.
The debate is not simply about cryptocurrency itself. Bitcoin and other digital assets can be used legitimately, but scammers have turned convenient cash-to-crypto machines into tools for stealing money from unsuspecting people. Industry representatives argue that responsible operators already have protections in place, while consumer advocates question whether existing safeguards go far enough.
The most important lesson is simple: no legitimate police officer or government agency will demand that you pay a fine, settle a warrant or protect your money by depositing cash into a cryptocurrency ATM. If someone pressures you to use one, stop and independently verify the claim before sending anything. A moment of caution could prevent the loss of a lifetime of savings.
