Criminals using crypto ATMs to scam victims | Here's what to know

Authorities estimate it's happening every minute in the United States: someone falling victim to an old cash grab scheme that's using new technology.

The latest tool criminals are taking advantage of are crypto ATM machines.

Eyewitness News partnered with ABC News to learn more about the growing problem.

"I don't trust anything anymore," said a mother from New Jersey.

She didn't want her name to be used but she spoke to Eyewitness News to try and prevent a similar scam from happening to someone else.

"You do blame yourself, there is shame," she said. "I did not want to tell anyone that this happened to me."

It all started with an urgent phone call she received from a man claiming to be a local sheriff lieutenant, telling her she missed jury duty and there are two warrants out for her arrest.

She said they played on her anxiety and kept her on the phone for two stressful, threatening hours.

"You can't hang up and if you do not follow our instructions, we will have you arrested," she said the man on the phone told her.

They urged her to deduct $7,500 from her bank and then drive to deposit that money into a crypto ATM.

"I had heard about Bitcoin machines but I had no experience and I have never seen one," she told Eyewitness News.

They work like other ATMs, but when you deposit cash it turns into digital dollars and can be transferred to anyone's crypto account. Once it's sent, it can be nearly impossible to get back.

Many of the crypto ATMs have warning signs posted on them, cautioning users about phone scams.

"It is a huge problem," said Amy Nofziger, director of Fraud Victim Support with AARP.

"I have talked to doctors, lawyers, professors, everybody can be a victim of these crimes," Nofziger said.

Last year, the FBI calculated nearly $247 million in victim losses from crypto ATM schemes. That's up from $114 million in 2023.

"These are all transnational criminal groups, these are not one-off guys in grandma's basement randomly calling old people," said Adam Zarazinski, CEO of Inca Digital.

The AARP is pushing for more protections, like limiting the amount of money that can be transferred at a time.

"We believe these machines need regulations and strong protections to protect victims of fraud," Nofziger said.

As for the New Jersey victim that spoke with Eyewitness News, she didn't know she was scammed until she returned home. She called police and they're investigating.

She wants others to learn from her case. The criminals knew her personal information and used the names of local police in the community to get her trust, they urged her to use her bank's drive-thru window and not to go inside the bank, and they pressured her to not end the phone call.

"Even though it sounded legitimate to me, you have to find a way to be sure it's legitimate," she said.

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