Mon Dec 01 07:20:00 UTC 2025: FOR IMMEDIATE RELEASE

Iowa Consumers Warned: Cryptocurrency ATMs Fueling Scams, $100 Million in Losses Reported

DES MOINES, IA – Iowa residents are being warned about a rising tide of scams facilitated by cryptocurrency ATMs, also known as Bitcoin ATMs. According to the Federal Trade Commission, consumers are reporting over $100 million in losses annually due to these scams, and the trend shows no signs of slowing down.

These electronic kiosks, which allow users to buy cryptocurrencies with cash or debit cards, are being exploited by scammers employing high-pressure tactics to trick Iowans into transferring funds to digital wallets under the criminals’ control.

“The scams start through chats, social media, emails, texts, computer pop-ups, and phone calls from strangers,” warns James Johnson, Superintendent of Banking with the Iowa Department of Insurance and Financial Services. “The lies told by criminal scammers vary, but they create some urgent justification for Iowans to take cash out of their bank accounts and put it into a cryptocurrency ATM. In many cases, the scammer poses as a government official and instructs their intended victim that transferring their money is the only way to protect it.”

Once the money is deposited and converted into cryptocurrency, the scammer directs the victim to either enter their digital wallet address or scan a QR code that leads to the scammer’s wallet. The cryptocurrency is then transferred, making recovery virtually impossible.

The Iowa Department of Insurance and Financial Services urges Iowans to take the following precautions:

  • Be wary of unsolicited contact: Never click on links or respond to unexpected calls, messages, or computer pop-ups. Independently verify the contact information of the company or agency.
  • Slow down: Scammers rush you. Pause and consult trusted sources before acting.
  • Never withdraw cash: Only scammers will instruct you to withdraw cash in response to an unexpected request.
  • Be skeptical of cryptocurrency ATM instructions: Legitimate businesses and government agencies will never ask you to use a cryptocurrency ATM.
  • Beware of secrecy: Scammers often isolate victims by urging them to keep information secret.

“Cryptocurrency transactions are designed to be anonymous and instantaneous,” warns Johnson. “Most investment losses due to cryptocurrency investments are difficult to recover.”

However, Iowa law requires cryptocurrency ATM operators to issue refunds under specific conditions related to fraudulent transactions. Consumers must report the fraud within 90 days and provide proof, such as a police report or sworn statement.

For more information and resources, visit http://www.iowafraudfighters.gov, where Iowans share their experiences with these scams to help others protect themselves.

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