**Title: Bitcoin ATMs Targeted by Scammers, Experts Warn**

In June 2024, Fran Bates, an 85-year-old resident of Texas, found herself in a distressing situation at a gas station. She was convinced by a scammer posing as a bank representative that her savings were at risk. As a result, she withdrew over $40,000 in cash and deposited it into a Bitcoin ATM, believing it would keep her money safe.

"It's a horrible, horrible experience," Bates said in a recent interview. The scammer, who likely operated from overseas, instructed her to feed $100 bills into the machine over two days. Bates recalled feeling trapped, saying, "Oh, they have you right where they want you."

The FBI reported that scams involving Bitcoin ATMs cost Americans nearly $250 million in 2024, more than double the amount from the previous year. AARP has alerted its 38 million members that these ATMs are increasingly being used by scammers to defraud unsuspecting individuals.

Bitcoin ATMs allow users to insert cash and send it to a digital wallet, making transactions nearly untraceable. Amy Nofziger, AARP's director of fraud victim support, noted, "Yes, requesting crypto is now the No. 1 preferred method of criminals. It is a huge problem."

Authorities are taking action. The Washington, D.C., attorney general's office recently filed a lawsuit against Athena Bitcoin, a major provider of Bitcoin ATMs, alleging that 93% of transactions on its machines in the district were fraudulent. The lawsuit claims that the median age of victims was 71 years. Athena Bitcoin denied the allegations, stating that it has strong safeguards against fraud.

AARP is advocating for stricter regulations on Bitcoin ATMs, such as capping daily deposit amounts. At least 17 states have enacted legislation to regulate these machines, while some municipalities have banned them altogether. However, critics argue that some Bitcoin ATM companies resist regulation due to potential impacts on their profits.

Adam Zarazinski, CEO of Inca Digital, a cryptocurrency forensics firm, suggested that these companies may be aware of the scams. "They either know or they're turning a blind eye to it, yes," he said.

In Iowa, Attorney General Brenna Bird filed a lawsuit against Bitcoin Depot and CoinFlip, accusing them of profiting from scams through excessive fees. Both companies have denied the allegations, with Bitcoin Depot claiming that it requires identification for transactions and provides scam warnings to customers. CoinFlip stated that it refunds transaction fees to victims of fraud.

While many victims struggle to recover their lost funds, Fran Bates' story had a fortunate outcome. Myndi Jordan, a fellow customer at the gas station, noticed Bates's distress and called the police. Lieutenant James Stewart of the White Settlement Police Department arrived just in time to prevent Bates from completing the transaction.

"Do not click anything," Stewart instructed her as the scammer urged Bates to finalize the payment. Thanks to Stewart's intervention, Bates did not lose her money. He later delivered a cashier's check to her and assisted her in depositing it back into her account.

Bates expressed her gratitude, calling Stewart her "knight in shining armor." She and Jordan reunited for an interview, with Jordan stating, "I hate when somebody tries to take advantage of somebody that's not able to protect themselves."

As scams involving Bitcoin ATMs continue to rise, experts urge individuals to remain vigilant and cautious. They recommend taking a moment to think critically if faced with similar situations, as many victims find themselves overwhelmed and confused during these scams.