Crypto ATM Scam in Clay County And How Victims Were Tricked

Clay County is facing a serious wave of cryptocurrency ATM scams. In just the last two years, 156 people have collectively lost $3 million, with victims often receiving frightening phone calls that push them into acting quickly. The scammers pretend to be law enforcement and pressure people into withdrawing cash, converting it to Bitcoin, and sending it through a crypto ATM. Once the money is converted and transferred, it becomes extremely difficult often impossible to get back.

The scheme uses the same emotional tricks seen in old telephone scams, but adds a new digital twist that makes the money vanish almost instantly. Local police, prosecutors, the FBI, and financial researchers all warn that criminals are choosing Bitcoin kiosks because the transactions are fast, irreversible, and very hard to trace.

According to Clay County Prosecutor Zach Thompson, the scam begins with a phone call designed to trigger fear. Victims are told there is a warrant for their arrest because they supposedly missed jury duty. The callers pretend to be from the sheriff’s office and warn that unless a payment is made immediately, someone will come to arrest them.

This approach is not new. Thompson says the scam is “as old as the telephone.” What has changed is the method of payment. Instead of asking for gift cards or money orders, scammers now direct victims to Bitcoin ATMs, also called BTMs. These machines resemble standard ATMs, but instead of dispensing cash, they allow anyone even without a bank account to buy cryptocurrency using cash or a debit card.

Scammers guide victims step-by-step, instructing them to withdraw thousands of dollars from their bank, avoid talking to tellers, and feed the cash into a Bitcoin ATM. Victims are then told to scan a QR code linked to the scammer’s digital wallet. Once the Bitcoin is sent, the criminals receive it instantly. The most recent case happened in October, when a 67-year-old woman was convinced to withdraw $14,000 after being told she faced a felony warrant. Liberty Deputy Police Chief Matt Kellogg said the scammers kept her nervous and isolated throughout the entire process so she would not ask for help.

Bitcoin’s design offers some advantages to users, but it also poses major obstacles for law enforcement. Every Bitcoin transaction is recorded on a public blockchain, yet the system does not reveal names or identities. This makes it extremely difficult to connect a scammer’s wallet address to a real person unless the funds pass through a regulated exchange with identity requirements.

Another challenge is finality. Bitcoin transactions cannot be reversed under any circumstances. There is no bank or authority that can freeze a transfer once the funds have been sent. Criminals also move quickly. They often shift stolen Bitcoin through multiple addresses, automated services, or international platforms. Within minutes, the path becomes nearly impossible to follow. Thompson says Clay County has not been able to make a single arrest in any of the 156 cases, partly because the digital trail goes cold so fast.

The FBI reports the problem is growing nationwide. In 2024 alone, cryptocurrency kiosk fraud in the United States reached more than $107 million, increasing 31% from the previous year. The Federal Reserve Bank of Kansas City raised alarms about this trend in 2023, noting that scammers commonly send victims a QR code and instruct them to send money through a BTM, with the funds being permanently unrecoverable afterward.

Bitcoin ATMs are supposed to follow strict money-service rules, including anti-money-laundering requirements. However, researchers at the Kansas City Fed found that many kiosk operators do little or nothing to comply with the regulations. The issue has grown serious enough that St. Paul, Minnesota, will ban all cryptocurrency kiosks starting December 21. Local officials said these scams disproportionately affect seniors and low-income residents.

Clay County is taking a softer approach. Prosecutor Thompson is placing warning signs directly on Bitcoin ATMs to interrupt scams before the money leaves a victim’s hands. The signs ask, “Are you being scammed?!” and urge people to beware of any demand for cryptocurrency payments.

Clay County’s experience shows how traditional phone scams have evolved into high-tech crimes that can drain a person’s savings in minutes. Bitcoin ATMs make the process fast and nearly untraceable, leaving victims with little hope of recovering their funds. As criminals continue to take advantage of fear, confusion, and unfamiliar technology, communities must focus on awareness, education, and stronger enforcement.

The rise in cases across the country also signals a broader need for clearer rules and tighter monitoring of crypto ATM operators. Until these steps are taken, scammers will continue to exploit the gap between old tactics and new tools.

Do you think cryptocurrency kiosks should be more tightly regulated, or should communities consider banning them altogether to protect vulnerable users?