NORTH CAROLINA (WTVD) — An ITEAM investigation in collaboration with ABC News is exposing scams involving Bitcoin ATMs – kiosks that are popping up across North Carolina and throughout the country. Many are right here in the Triangle, and the ITEAM has learned consumers are losing thousands of dollars to scammers using these machines.
The FBI says scams involving Bitcoin ATMs cost Americans nearly $250 million in 2024, more than double the losses from the previous year. The AARP is now warning its 38 million members that Bitcoin ATMs have become a favorite tool for scammers to steal from unsuspecting Americans.
Durham resident Pamela Mangum is one of the victims. She lost more than $70,000 in a Bitcoin ATM scam. She first spoke to Troubleshooter Diane Wilson in 2024, saying she had never heard of a Bitcoin ATM until someone posing as her “investment coach” walked her through how to use one.
Mangum explains, “You have to insert cash into that machine, and she would tell me how much cash I had to insert to get to the next level – to continue earning money.”
Over several transactions, Mangum put thousands of dollars in cash into Bitcoin ATMs before realizing the “investment” was an elaborate scam.
“I get very emotional because I’m a smart lady, and I just fell for this. I thought it was easy money,” Mangum told Wilson. “It’s very difficult to swallow. I did nothing but lose money.”
Mangum is not alone. Scams involving Bitcoin ATMs are on the rise. Amy Nofziger with the AARP Fraud Watch Network says, “It is a huge problem. Right now, it’s estimated there are about 45,000 crypto ATM machines across the country.” She says victims call their office every day to report Bitcoin ATM scams. “Criminals are always looking for new ways to steal from us – and this is just their latest way to get our money.”
Adam Zarazinski, CEO of Inca Digital, a cryptocurrency forensics firm, explains how scammers convince victims to use these machines. “You put money into a Bitcoin ATM and send the equivalent value – in Bitcoin or other cryptocurrencies – to a wallet address,” he says. “Typically, you scan a QR code linked to a wallet, and the ATM sends the money there.” While scammers profit, Zarazinski says the businesses hosting Bitcoin ATMs also benefit. “For every transaction, they make between five and 25 percent – often on the higher side of that range,” he says. “So, they turn a blind eye.”
He adds that transnational crime groups are often behind these scams. “Here in the U.S., we’re talking about a multi-billion-dollar industry that’s stealing money from everyday Americans and laundering it overseas.”
In North Carolina, Attorney General Jeff Jackson, Secretary of State Elaine Marshall, and other agencies launched a statewide effort this summer to combat cryptocurrency and Bitcoin ATM scams. The AARP is also pushing for stronger consumer protections and regulations, including daily transaction limits. “We want these ATMs to have the same safeguards as other financial tools,” Nofziger says. “For example, a new customer might be limited to $1,000 per day.”
Once you put cash into a Bitcoin ATM, it’s extremely difficult to get your money back.
Wilson recently heard from another Durham woman who lost nearly $24,000 after a scammer convinced her there were fraud charges on her account.
To protect yourself:
- Be wary of unsolicited texts or calls claiming fraud or legal trouble.
- Don’t rush – scammers rely on urgency to pressure you.
- Talk to someone you trust before sending any money.
- Contact law enforcement if something doesn’t feel right.
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