Background
The office has launched a new complaint form that urges victims to report crypto‑ATM scams within 30 days, improving the odds of recovering lost funds.
How the Scams Operate
Scammers typically use urgent phone calls, posing as law‑enforcement, utility providers, or distressed relatives, and pressure victims to withdraw cash and deposit it into crypto ATMs.
- Impostor claims: law enforcement, utilities, loved ones
- Pressure to withdraw cash quickly
- Deposit into crypto ATM for conversion
Scale of the Problem
FBI data shows Americans lost $246 million to crypto‑ATM fraud in 2024, with 43 % of victims over age 60. Approximately 31,339 crypto ATMs are operating nationwide, according to CoinATMRadar.
Legislative Response
Arizona’s new law requires crypto‑ATM operators to:
- Display multilingual fraud warnings
- Provide 24/7 live customer support
- Cap daily transactions at $2,000 for new customers and $10,500 for existing users
Other jurisdictions such as Spokane, Washington and Illinois have adopted similar restrictions.
Enforcement Actions
Operators are facing penalties, exemplified by a recent $1.9 million settlement by Bitcoin Depot with Maine regulators over scam‑related transactions.
Consumer Guidance
Experts advise that no legitimate entity will ever request crypto‑ATM deposits. Consumers should independently verify urgent payment requests and consult trusted advisors before making large transactions.