AI-Powered Crypto Scams Are Booming — And Bitcoin ATMs Are the New Trap
So, here's something that’s both wild and kind of terrifying: crypto scams are evolving faster than ever, and artificial intelligence is giving them a serious upgrade. In fact, between May 2024 and April 2025, global crypto scams jumped a staggering 456%. What’s making them so effective? According to Ari Redbord from blockchain intelligence firm TRM Labs, scammers are now using AI to create incredibly convincing deepfake voices and even fake credentials. It’s gotten to the point where they can sound like your mom or best friend — and they’re using that to trick people into sending crypto in moments of panic or urgency.
One method that’s popping up again and again? Bitcoin ATMs — especially in big cities like New York, Miami, and LA. You’ve probably seen them tucked away in delis or corner stores. To a scammer, these machines are a goldmine. Victims are often told to scan a QR code and deposit cash into the ATM. The money is instantly turned into cryptocurrency, and once that happens, it’s gone — permanently.
Here’s where it gets even crazier. In June, New York authorities managed to freeze $300,000 in stolen crypto and shut down over 100 scam websites. These sites were part of a ring, reportedly based in Vietnam, targeting Russian-speaking communities in Brooklyn with fake Facebook ads for investment opportunities. They used deepfake BitLicense certificates to look legit and then lured victims onto encrypted apps like Telegram before draining their wallets.
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And it’s not just everyday people falling for this. Even high-level execs in the crypto world have been duped. MoonPay’s CEO and CFO, both based in Florida, were tricked into sending $250,000 to a scammer pretending to be a Trump inauguration insider. This just shows that no one — regardless of how tech-savvy they are — is truly immune.
Globally, crypto fraud cost people over $10.7 billion in 2024, with nearly $4 billion reported in the US alone. And that’s only from the small percentage of people who actually report the crime. Many victims, especially older adults or those from immigrant communities, never come forward out of embarrassment or fear.
Bitcoin ATMs have been flagged as a key tool in these scams. The rate of illicit activity around them is more than double what’s seen across the broader crypto ecosystem. Victims are often told to go to one of these kiosks, scan a QR code, and drop in cash. Just like that, the funds are converted and whisked away.
Lawmakers are finally starting to respond. Last week, Congress passed its first comprehensive set of crypto regulations — aimed at bringing some much-needed structure to the industry. But for now, Redbord says your best protection is still common sense: always double-check who you’re talking to, question anything that feels too good to be true, and report suspicious behavior when you see it.
Because let’s face it — when AI can sound exactly like someone you trust, a little skepticism might just save you thousands.
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