By Matthew Holloway |

The Arizona Corporation Commission (ACC) is urging caution from the public in the use of Crypto ATMs with a warning that they are being utilized to facilitate cryptocurrency scams in a bigger way “than ever before.” Reporting from the FBI has indicated losses to consumers in Arizona of over $325 million.

According to a press release by the ACC Securities Division, national data from the Federal Trade Commission (FTC) has shown American consumers reporting losses in excess of $110 million through scams linked to cryptocurrency ATMs documented in 2023, a drastic escalation at ten-times the 2020 figure.

As explained by the ACC, Crypto ATMs, kiosks that allow users to purchase cryptocurrencies using a credit or debit card, have become more ubiquitous and are visually similar to traditional ATMs. They are often located at gas stations, convenience stores, malls, and other places where an ATM would typically be present. However, unlike a typical ATM, these kiosks convert dollars to cryptocurrency held in an electronic wallet… for a fee.

Portal scamming, an already common issue at ATMs, fuel pumps, and cash registers poses an added danger with the advent of Crypto ATMs as the ACC explains:

“The scams typically start through online chats, social media, emails, texts, pop-up messages and phone calls from strangers. The lies told by scammers vary, but they create some urgent justification for consumers to take cash out of their bank accounts and put it into a crypto ATM.

“Often, the scammers fabricate an investment that promises great returns with limited risk. When consumers put their money into the crypto ATM, the ATM converts the money to cryptocurrency. The consumer types in the scammer’s electronic wallet address, or the consumer is given a QR code to scan which points to the scammer’s electronic wallet address. The ATM then transfers the crypto to the scammer’s electronic wallet. Once in their control the scammers quickly move the crypto making it very difficult to trace and recover.”

The commission offered a series of proactive recommendations to consumers to avoid becoming a victim to scam artists employing these tactics:

• Never click on links or respond directly to unexpected calls, messages, or computer pop-ups. If you think it could be legitimate, contact the company or agency, but look up their number or website yourself. Don’t use the phone number the caller or message gave you.
• Slow down. Scammers want to rush you, so stop and check it out. Before you do anything else, talk with someone you trust.
• Never withdraw cash in response to an unexpected call or message. Only scammers will tell you to do that.
• Don’t believe anyone who says you need to use a crypto ATM to protect your money or to fix a problem or to get in a great investment. Real businesses and government agencies will never do that—and anyone who asks is a scammer.

One victim identified as Tamara Glerum by AZFamily, reportedly lost $28,000 to a scammer, with the FBI stating that Arizonans overall lost about $325 million in reported Crypto ATM fraud.

As reported by ABC15, a Peoria woman reportedly lost $17,000 to such as scam, and AZ State Rep. David Marshall has introduced House Bill 2387 to crack down on Crypto ATM fraud by imposing a $1,000 daily transaction limit on the devices, requiring state operator licensing and refund policy options as well.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.