NEW YORK, March 13, 2026 (GLOBE NEWSWIRE) -- CertiK, the largest Web3 security services provider, released its Skynet Crypto ATM Fraud Report, an analysis of the rapidly expanding fraud ecosystem surrounding cryptocurrency kiosks. The report examines the mechanics of crypto ATM scams, global trends in financial losses, attacker infrastructure, enforcement actions, and strategies for mitigation.

Crypto ATM fraud is one of the fastest-growing financial crime categories in the United States. Criminal networks exploit the speed and pseudonymity of crypto ATMs to extract funds from victims, particularly older adults, while law enforcement faces growing challenges in tracing these transactions.

Crypto ATM Fraud Losses Reach Record Levels

Financial losses tied to crypto ATM scams reached $333.5 million in 2025. According to complaint data from the Federal Bureau of Investigation (FBI), more than 12,000 crypto ATM fraud complaints were recorded between January and November 2025, representing a 33% increase compared to the same period in 2024.

The United States hosts roughly 78% of the world's 45,000 crypto ATMs, making it the primary target for fraud operations. These machines allow users to convert cash into cryptocurrency in less than five minutes, often with minimal identity verification.

Architecture Creates and Attribution Gap for Investigators

The report emphasizes that crypto ATMs function as frontend terminals, rather than standalone devices, creating a structural challenge for investigators. Each kiosk routes transactions through a backend Crypto Application Server (CAS) operated by the ATM provider. When a victim deposits cash, the CAS releases the crypto from the operator's commingled hot wallet to the destination address provided by the scammer.

As a result, the public blockchain records only the operator-to-destination transfer, not the victim's identity or the physical cash deposit that initiated the transaction. This creates what CertiK's report identifies as an “attribution gap.”

Elderly Victims Bear the Majority of Losses

Older adults remain the most heavily targeted demographic in crypto ATM fraud. According to the report, individuals over 60 account for approximately 86% of reported losses. Recent enforcement actions highlight the scale of the problem. In a case brought by the Office of the Attorney General for the District of Columbia against crypto ATM operator Athena Bitcoin, investigators found that 93% of deposits on certain machines were linked to fraudulent activity. Additionally, the median victim age is 71.

Regulatory Fragmentation Creates New Risks

As states in the U.S. introduce transaction limits and consumer protection rules, criminal networks are adapting by shifting toward distributed, low-value deposits across multiple kiosks. This strategy allows attackers to remain below regulatory thresholds while maintaining large aggregate volumes.

To date, at least 14 U.S. states have enacted or proposed crypto ATM-specific regulations, but enforcement and operational standards vary widely across jurisdictions.

Recommendations for Detection and Mitigation

The Skynet Crypto ATM Fraud Report outlines key measures that operators, regulators, and investigators can implement to reduce fraud exposure, including:

• Real-time wallet screening at the CAS level to block transfers to known scam addresses before broadcast.
• Enhanced transaction monitoring and anomaly detection across ATM networks.
• Improved identity verification and transaction limits for first-time users.
• Stronger collaboration between operators, blockchain intelligence platforms, and law enforcement.

By addressing the architectural and operational vulnerabilities that enable crypto ATM fraud, the report concludes that the industry can significantly reduce victim losses while preserving legitimate access to digital asset infrastructure.

Full report (EN): https://indd.adobe.com/view/75d335f7-2443-44a1-b14d-c9c799de303e

Media contact:
Elisa Yiting Xu
yiting.xu@certik.com

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