State officials are warning Iowans to be extremely cautious when using cryptocurrency ATMs, which continue spreading rapidly across the state. Nearly 400 of the machines — often called crypto or bitcoin ATMs — are now operating in Iowa, including 25 in Des Moines alone.
James Johnson, superintendent of banking with the Iowa Department of Insurance, says the growing popularity of digital currency has created new opportunities not only for investors, but for scammers.
“With the trend of cryptocurrency, you’re seeing a surge in the availability of the ATMs,” Johnson says. “Using them is fine if you’re transferring money into your own crypto wallet or account. The problem is that scammers are finding ways to get people to use these machines for their own gain.”
According to the Federal Trade Commission, consumers lost more than $100 million to crypto-related scams last year. Johnson says criminals are taking advantage of the easy access to these ATMs, convincing victims to deposit cash that is then sent directly to a scammer’s digital wallet.
“Whether it’s a social media scam, a romance scam, a supposed toll violation — whatever the story — they pressure people with a sense of urgency,” Johnson says. “Many Iowans don’t fully understand how these crypto ATMs work, and once that money is sent, it’s gone. You won’t get it back.”
Johnson says it’s crucial for consumers to understand how the machines operate, how scammers approach victims, and how to stay safe.
“Talk to people you trust,” he says. “Start with people you know. Talk to your banker or your financial planner. Reach out to someone who’s an expert and can walk you through it.”
Many of the scams begin with unsolicited contacts — chats, social media messages, emails, texts, computer pop-ups, or phone calls from strangers. Scammers often pose as government officials claiming they’re helping protect someone’s funds.
“If you’re questioning whether something is real, take a step back and seek guidance,” Johnson says. He encourages Iowans to visit iowafraudfighters.gov, which outlines common scams and provides examples of recent cases.
Johnson stresses that no legitimate official or business will ever direct you to withdraw cash and deposit it into a cryptocurrency ATM. Anyone making that demand is attempting to scam you.
