Arizona Warns of Crypto ATM Scams After $177M in Losses

TheNewsCryptoPublished on 2026-02-03Last updated on 2026-02-03

Abstract

Arizona Attorney General Kris Mayes issued a statewide warning about the rising threat of crypto ATM scams, which cost residents over $177 million in losses in 2024. The FBI reported a 99% increase in such complaints nationwide, totaling more than $246 million. Scammers typically contact victims via phone or text, posing as banks, law enforcement, or relatives, and convince them to deposit cash into one of Arizona’s 600 crypto ATMs—after which funds are irrecoverable. In response, Arizona implemented the Crypto Kiosk Licence Fraud Prevention law, capping daily transactions at $2,000 for new users and $10,500 for existing ones. Operators must now refund victims who file a police report within 30 days. The state has also placed physical "STOP" signs on Bitcoin ATMs and collaborated with law enforcement to raise awareness. Legal actions are expanding beyond Arizona, with Washington D.C.’s Attorney General suing Athena Bitcoin after finding that 93% of its deposits in the first five months were scam-related, often targeting elderly victims.

The Attorney General of Arizona, Kris Mayes, issued a statewide warning on January 2, alerting natives that crypto ATM fraud has become an increasing threat after Arizonans lost more than $177 million to these schemes in 2024.

At the same time, her office rolled out a new fraud complaint form, permitting victims to note losses within 30 days of being scammed. The alert comes as a wide clampdown on crypto kiosk fraud increases over the US and beyond, with the FBI noting a 99% increase in complaints and more than $246 million in losses in 2024.

From having lawsuits against prominent operators to extensive federal legislation, the industry is under fire as policymakers race to safeguard vulnerable consumers. Scammers normally reach victims via unsolicited calls or texts, imitating banks, law enforcement, or loved ones before influencing them to deposit cash into one of Arizona’s 600 crypto ATMs.

Once funds are deposited into a kiosk, it is not possible to recover them. Scottsdale police have solely reported around $5 million in losses in 2026. Arizona has also collaborated with Yavapai County Sheriff David Rhodes to position physical “STOP” signs on Bitcoin ATMs all over the state.

The Increased Cases

After warnings, Arizona’s Crypto Kiosk Licence Fraud Prevention law, efficient since September 2025, caps daily transactions at $2,000 for new customers and $10,500 for current users.

Operators must now provide complete refunds to fraud victims who file a police report within one month. At that time, Governor Hobbs also signed HB 2749 to make a state BTC reserve funded completely by unclaimed digital assets.

As Arizona makes consumer safeguards tighter, legal battles are escalating elsewhere against some of the sector’s largest players. The Attorney General of Washington, D.C., Brian Schwalb, sued Athena Bitcoin after a probe unveiled that 93% of the firm’s deposits at the time of its first five months in the district were directly associated with scams, with a median victim age of 71, and that one resident lost $98,000 over 19 transactions.

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