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Prices keep climbing. Your savings don’t stretch as far as they once did, and you’d like your money to work harder.
Then an investment opportunity catches your attention on social media.
The person sharing it looks credible. His profile says he works for a financial firm you recognize. He posts about the markets and shares investment advice on YouTube and LinkedIn. The comments on his posts are filled with people sharing their success stories and applauding his recommendations.
So you send a message.
He doesn’t immediately ask for money. Instead, he answers questions. He explains how other investors use cryptocurrency to diversify their investments. When you tell him you’re new to crypto, he reassures you that he can guide you through the process. He may talk about inflation, potential returns, or tax advantages. The conversation sounds informed and professional.
Over time, you begin to trust his advice.
Then something changes. You need to act soon. A price is about to move, he says. Waiting for an ACH payment or wire transfer could mean missing the opportunity. He offers a faster solution: Withdraw cash and take it to a crypto ATM.
You search for one nearby and come up empty.
Your new “financial advisor” already has an answer. He gives you the location of a machine in Michigan or Ohio. He’ll stay in touch and walk you through the transaction when you arrive.
Consider how far the conversation has moved. Someone you met online now wants you to withdraw thousands of dollars in cash and drive across state lines to send it through a machine.
Stop before you get in the car.
Indiana Has Banned Crypto ATMs
Indiana became the first state to ban crypto ATMs in 2026. Why? Americans reported $1.5 billion in losses from scams involving cryptocurrency through the third quarter of 2025.
Investment fraud accounts for a large share of the problem. Through the third quarter of 2025, victims of 18,518 investment scams reported sending scammers $863 million in crypto. That figure rose by roughly $300 million from the same period in 2024.
The longer trend shows how quickly the losses have grown. Scammers received a reported $132 million through cryptocurrency in 2020. The figure jumped to $748 million in 2021 and reached $1.4 billion in 2024, according to FTC data cited by The Motley Fool.
Crypto ATMs also show up in thousands of fraud reports. The FBI’s Internet Crime Complaint Center received more than 10,956 complaints involving the machines in 2024. Victims reported losses of about $246.7 million.
Indiana removed crypto ATMs from the state. But scammers have another option: persuade victims to travel.
What Does a Crypto ATM Do?
A crypto ATM may look a little like the ATM you use at your bank, but the transaction is very different.
When you use a bank ATM, the machine connects to your bank account. Your bank keeps a record of your balance, holds your deposits, and provides ways for you to access your money. The bank also has security procedures and people you can contact when something goes wrong.
A crypto ATM lets you buy or transfer cryptocurrency: you insert cash and it adds the crypto to an account. But is it your account?
Each “digital wallet” has an address that tells the network where to send the crypto. The person who controls the wallet’s private credentials controls the cryptocurrency associated with that address.
That creates an important difference from a bank account. Your bank knows who owns your account and helps control access to it. With cryptocurrency, possession of the private credentials may give someone control over the funds associated with a wallet. A bank doesn’t oversee that wallet or approve transfers from it.
This matters when someone sends you a QR code. When you scan it at a crypto ATM, it tells the machine where to send the cryptocurrency you just purchased.
You may hear that you’re sending money to an investment account created for you. The transaction on the screen may look unfamiliar, so you rely on the person guiding you. Once the cryptocurrency reaches a wallet the scammer controls, there are fewer options to recover your money.
For a closer look at how the machines work, read our guide to crypto ATMs and scams.
Why Crypto ATMs Appeal to Scammers
Speed matters to a scammer.
Once you send cryptocurrency to another wallet, reversing the transaction may prove difficult. Cryptocurrency transfers don’t offer the same dispute process you may have used with a credit card purchase.
The scammer may guide you through each step at the kiosk. You receive instructions about how much cash to deposit and which selections to make. A QR code supplies the wallet address. Throughout the process, they stay on the phone with you.
That contact keeps the scam moving. It also leaves less room for another person to question what’s happening. If something on the screen concerns you, the scammer has an explanation ready.
The cash creates another problem. Once you withdraw money from your account and use it to purchase cryptocurrency, we may have few options for recovering it after you send the crypto to someone else.
This is why we want to talk with you before the transaction takes place.
Different Scams, Similar Instructions
Investment fraud is one route to a crypto ATM. Scammers use other stories, too.
Someone may claim to work for a government agency and demand payment in order to stop legal proceedings. Maybe it’s a utility company threatening a shut-off. Another scam may begin with a computer warning that directs you to fake tech support. Or maybe your Facebook friend or love-interest has an unexpected bill.
Whatever the story, focus on the payment instructions.
Pay close attention when someone unexpectedly asks you to withdraw a large amount of cash and send it through a crypto ATM. Treat secrecy as another warning. A scammer may tell you that discussing the transaction with us will ruin the investment, delay the payment, or create other problems.
If someone tells you to hide the real reason for a withdrawal from us, stop. That person is trying to prevent a conversation that could protect your money.
Talk With Us Before You Send Money
You don’t have to judge an investment or unusual payment request alone. Bring the request, payment instructions, messages, QR codes, or other details to us before you move the money.
We’ll help you review the payment method and find official contact information. We’ll also point out details that deserve a closer look.
Talking with us doesn’t accuse anyone of a crime. It gives you more information before you make a financial decision.
And there’s no reason to feel embarrassed if you’ve already followed some of the instructions. Scammers build convincing stories, impersonate people we trust, and put their targets under intense pressure.
So if someone tells you to withdraw cash, drive across state lines, and use a crypto ATM, don’t let that deadline rush your decision.
Slow down. Contact us or visit your local banking center. We’re happy to help!
Sources:
https://bankingjournal.aba.com/2026/04/states-tighten-reins-on-crypto-atms/
https://www.fool.com/research/crypto-investment-scams/
https://www.aarp.org/advocacy/crypto-atm-fraud-protections/
https://www.aarp.org/money/scams-fraud/indiana-crypto-kiosk-ban/