Crypto ATM scams in the United States rose sharply in 2025, with losses increasing 33 percent to around $333 million, according to a new report from blockchain security firm CertiK.
Experts believe that the increase in fraud cases is directly related to the increase in the use of artificial intelligence tools, especially deepfakes, to make fraud attempts more believable.
Crypto ATMs enable users to buy and sell cryptocurrency with cash and debit cards. Although crypto ATMs make it convenient for people to use cryptocurrency, security experts believe that crypto ATMs have also become a medium for financial fraud.
AI deepfakes fuel rise in crypto ATM scams
According to CertiK, fraudsters are increasingly using AI technology to produce deepfake audio and video content to impersonate trustworthy individuals such as bank officials or even loved ones.
The fraudsters might call or send the victim video messages that look legitimate and make the victim feel that they need to act quickly.
The fraudsters might ask the victim to withdraw cash from their bank accounts and deposit it into a nearby crypto ATM.
Once the money is converted into cryptocurrency and sent to the fraudster’s wallet, it becomes extremely difficult to retrieve the money.
AI makes fraud more convincing
Security researchers say AI has made these scams far more persuasive. Deepfake technology can mimic voices and facial expressions with surprising accuracy, making it harder for victims to realize they are dealing with fraud.
The report also noted that older individuals are often targeted in these schemes. In most cases, scammers use pressure tactics to trick their victims into believing that if they don’t act quickly, they are likely to face some form of legal action or financial loss.
The rising cases of scams are occurring at a time when crypto ATMs are still expanding across the United States. Thousands of crypto ATMs have been deployed across different locations.
Scammers are taking advantage of this to lure victims into making transactions.
Regulatory bodies have time and again cautioned that genuine government bodies or financial institutions will never ask anyone to make a transaction through a crypto ATM. They have advised that if anyone receives such a notice, it is important to verify it before taking action.
CertiK has explained that the involvement of AI in scams is a major challenge that is affecting both the government and the cryptocurrency market. The scammers are expected to become better at their work as deepfake technology becomes more accessible.