Scammers using Bitcoin ATMs in latest scheme to steal money

October 8, 2025

BUCKS CO., Pa. (WPVI) — Crypto scammers are increasingly using what are called Bitcoin ATMS to carry out their cons.

Bitcoin ATMs don’t operate like a traditional ATM. Instead of withdrawing money, you use the machine to insert cash to buy Bitcoin.

The transaction is then sent to a crypto wallet, which is a place where someone can manage, trade, swap or use cryptocurrencies.

What makes the ATMs appealing to criminals is that the transactions are usually untraceable.

Crystal Reale of Bucks County said she was lured to a Bitcoin ATM scam. It happened this past July when she received a call from a man who identified himself as a Bucks County officer.

“Telling me that I had warrants out for my arrest,” Reale said. “I’m immediately freaking out, and I’m like, ‘What do you mean?'”

Reale said she was told it was for missing jury duty.

“And I just was summoned for jury duty back in June and I was released from it,” she added.

The call caused confusion and panic, and she closely listened to what she was told to do.

The con artist told her it could get worked out, but she needed to pay a bond, or she’d be going to jail in 72 hours.

“Which was like $5,000. I’m just like, ‘What am I going to do?'” she said.

She said the officer instructed her to go to the Bucks County Courthouse.

But first, she said she was told to head to the Sunoco down the road to pay the warrant. The money would need to be deposited into a Bitcoin ATM.

“He’s like, ‘I’m going to send you documents to state that this is for real. I’m going to send you a QR code for you to scan on this machine,'” she said

That QR code ended up being the gateway to the criminal’s crypto wallet. She said scams like buying large amounts of gift cards and even wiring money were on her radar.

But she had never heard of a Bitcoin ATM, so she scanned and deposited $5,000 in cash.

“There was no evidence that I had just put this $5,000 in this machine,” she said.

The officer then told her that the warrant wasn’t settled, and she would need to deposit $2,000 more, which she did.

After the transaction went through, her phone went dead and that is when she knew she had been scammed.

“I’m just crying. I started bawling,” she said.

Reale, a single mother, said the money was cash she had been saving over the course of a few years to take her two kids on a cruise.

“Vacation is not gonna be for a long time now,” she said.

Director of Fraud for the American Association of Retired Persons or AARP, Amy Nofziger, say Bitcoin ATM scams are a growing threat, especially among the elderly.

“It is a huge problem,” said Nfziger. “We believe these machines need regulations and strong consumer protections to protect victims of fraud.”

Nfziger said there are an estimated 45,000 of the crypto ATMS located in grocery stores, gas stations and corner stores across the country. And more pop up every day.

“These ATMS overwhelmingly serve criminals and scammers,” said Adam Zarazinski.

Zarazinski is CEO of Inca Digital, which does risk-focused intelligence for crypto and banking.

“These are transnational criminal groups,” he said. “These are not one-off guys in grandma’s basement, you know, randomly calling old people. These are compounds typically.”

Reale says she reported her crime to police and the Internet Crime Complaint Center or IC3.

It’s unclear if any investigation is underway in her case, but these scams are simply too prevalent for authorities to keep up.

“I’m so mad at myself for letting them get to me,” said Reale.

Experts told the Investigative Unit if you’re found in a similar predicament, breathe, slow down, and think about what’s going on.

They also said the bottom line is no legitimate organization will ask you to deposit cash into a Bitcoin ATM.

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