Steve Beckett, a 66-year-old Indiana resident, lost his life savings – $7,000 – after being targeted by a sophisticated scam that exploited a Bitcoin Depot ATM at a Circle K convenience store in December 2024. The incident, detailed in reports from the International Consortium of Investigative Journalists (ICIJ), highlights a growing trend of fraudsters leveraging cryptocurrency ATMs to defraud individuals, particularly older adults.
Beckett’s ordeal began when a fraudulent Microsoft service hotline message appeared on his computer. He was then contacted by individuals posing as technical support, bank employees, and even representatives from the Federal Reserve, all claiming his financial accounts were compromised due to alleged child pornography purchases. Threatened with arrest and financial ruin, Beckett was pressured into converting his savings into bitcoin.
Over two days, the scammers directed Beckett to a Circle K location equipped with a Bitcoin Depot kiosk. Unfamiliar with cryptocurrency, he followed their instructions, depositing $4,000 initially, then another $3,000. The ATM converted the cash into bitcoin, transferring it to a digital address provided by the fraudsters. Bitcoin Depot collected approximately $2,000 in fees from the transactions, according to the ICIJ report.
This case is not isolated. The District of Columbia Department of Insurance, Securities and Banking (DISB) issued a warning in late 2025 regarding an increase in scams targeting virtual currency kiosks, often referred to as Bitcoin ATMs. In 2023 alone, District of Columbia residents lost $6,781,705 to such scams. The DISB advises individuals to be wary of requests to send money to unknown individuals and to avoid situations where they are pressured into urgent financial transactions.
The ease with which scammers can exploit these kiosks is a key concern. Unlike traditional ATMs, crypto ATMs allow for the purchase and transfer of virtual currencies without the same level of verification or oversight. Scammers typically direct victims to deposit cash into the kiosk and then transfer the purchased cryptocurrency to a wallet they control via a QR code.
Chainalysis, a cryptocurrency research firm, reported in January 2026 that crypto scams surged in 2025, estimating at least $14 billion was stolen on-chain, a significant increase from previous years. The firm projects that the total figure could exceed $17 billion as more illicit wallet addresses are identified. The average scam payment also increased dramatically, from $782 in 2024 to $2,764 in 2025. The report also noted a rise in AI-enabled scams, which proved to be 4.5 times more profitable than traditional methods.
The Chainalysis report further identified strong connections between major scam operations and criminal networks in East and Southeast Asia, particularly in Cambodia and Myanmar, where trafficking victims are often forced to operate scams. Law enforcement agencies have made significant seizures of cryptocurrency linked to fraudulent activities, including a 61,000 bitcoin recovery in the UK and a $15 billion seizure connected to the Prince Group criminal organization.
The Department of Financial Protection and Innovation (DFPI) in California also issued a warning in December 2025 about crypto ATM scams, specifically targeting older adults. The DFPI noted that scammers are increasingly using these kiosks to drain victims’ wallets.
Bitcoin Depot, the company operating the ATM used in Beckett’s case, continues to operate kiosks in Circle K stores as part of a nationwide agreement. The company has not responded to requests for comment regarding the increasing number of scams facilitated by its machines.
