Cryptocurrency kiosks, also known as crypto ATMs or virtual currency kiosks, are used to convert dollars into digital currency. These machines may look like regular ATMs, but criminals can also use them as a fast, easy and hard-to-trace way to get access to victims’ cash. Crypto ATMs make it easy for scammers to convince victims to deposit thousands of dollars to “solve” urgent financial problems, making it more difficult to recover stolen funds. 

In many cases, these scams begin with a message from someone claiming to be a trusted source, directing you to withdraw cash from your financial institution and head to a nearby crypto ATM. Once the cash is fed into the crypto ATM, it's converted to cryptocurrency and ultimately lands in the criminal’s wallet.

Criminals are finding great success in convincing targets to use crypto ATMs because they aren’t well understood. If you receive an unexpected communication from someone who claims to represent a business you engage with, sign into your account via an app or website or call using a number on a paper statement, rather than following their direction on responding by a given link or phone number. If someone ever contacts and directs you to a crypto ATM to solve an emergency, it’s a scam. 

Learn how to spot and avoid scams with AARP Fraud Watch Network™. Suspect a scam? Call our free helpline at 877-908-3360 and talk to one of our fraud specialists about what to do next. 

Need a scam prevention speaker for your group? Send an email to me@aarp.org.