A new report from cybersecurity firm CertiK reveals a sharp rise in cryptocurrency ATM fraud, with losses in the U.S. hitting $333 million last year. Complaints filed with the FBI jumped by a third, a spike experts link to criminal networks adopting industrial-scale operations and sophisticated artificial intelligence.

These machines, which allow users to convert cash to digital currency in minutes with little oversight, have become a preferred tool for extraction. The U.S., home to 78% of the world's 45,000 crypto kiosks, saw over 12,000 complaints in the first eleven months of 2025.

The crimes rely on social engineering, not digital hacking. Scammers use five main ploys: government impersonation, fake tech support, grandparent scams, bogus recovery offers, and the complex 'pig butchering' investment and romance cons. While 86% of victims are over 60, younger people are increasingly ensnared.

AI is a major accelerant. CertiK found AI-enabled scams in 2025 were 4.5 times more profitable. Criminals now use deepfake technology and data-scraping tools to create hyper-personalized, convincing impersonations of a victim's contacts.

This isn't the work of lone actors. CertiK notes a shift toward structured transnational groups with corporate-style operations, making forensic tracing difficult. Legislative responses are emerging, including the Crypto ATM Fraud Prevention Act introduced last February, aiming to build user safeguards without stifling innovation.

Source: CoinTelegraph