Bitcoin ATMs in the United States are facing increased regulatory scrutiny following reports of over $333 million in scam-related losses in 2025. Federal data highlights these machines as a major channel for financial fraud, with the FBI recording more than 12,000 complaints linked to Bitcoin ATMs from January to November 2025. The Financial Crimes Enforcement Network (FinCEN) noted a near doubling of fraud reports compared to the previous year. Regulators are now reassessing the approximately 31,000 Bitcoin kiosks across the country, often found in gas stations and convenience stores, viewing them as a systemic risk. These machines allow scammers to convert cash into irreversible cryptocurrency transactions, bypassing traditional banking protections. Older individuals are particularly vulnerable, frequently targeted by scams involving tech support or government impersonation. In response, agencies like the Department of Financial Protection and Innovation (DFPI) have issued public guidance, emphasizing that legitimate organizations will not request cash deposits into crypto ATMs. As education alone proves insufficient, policymakers are considering stricter regulations, similar to measures in countries like Australia, to curb the rise in Bitcoin ATM fraud.