FBI Says Criminals Are Using Crypto ATMs in Impersonation Scams

FBI has warned that impersonation scams tied to cryptocurrency ATMs are growing in Kentucky, with fraudsters posing as law enforcement and pushing victims into fast payments. The alert points to a wider pattern across the United States, where government impersonation scams are causing steep losses and making crypto a more common fraud tool.

Good to Know

• FBI Louisville Field Office issued the warning on March 18, 2026.
• FBI said real law enforcement will not demand payment or threaten arrest by phone, and will not request payment through cryptocurrency ATMs.
• IC3 received 39,949 government impersonation scam complaints in 2025, with losses above $833 million nationwide.

Fake Law Enforcement Calls Push Victims to Crypto ATMs

According to FBI, scammers are spoofing caller ID to make calls look like they come from real government offices. From there, they pressure victims with claims about missed jury duty, court problems, or other legal trouble, then demand immediate payment through cryptocurrency channels. FBI said those demands are fraudulent.

“Be advised, the FBI and legitimate law enforcement authorities will not call members of the public to demand payment or threaten arrest, nor will they request or accept payment via cryptocurrency ATMs.”

Investigators said crypto has become attractive to criminals in these schemes because transfers are hard to reverse once cash is deposited into a crypto ATM or sent to a wallet controlled by a scammer. In some cases, fraudsters also use fake documents, partial personal details, or polished messages to look more convincing.

Here is what is in the FBI alert:

• Caller ID spoofing to mimic police or government numbers.
• Threats tied to supposed legal violations or arrest.
• Instructions to use cryptocurrency ATMs or send digital assets.
• Advice to stop contact, call a bank, contact local police, and file an IC3 complaint.

FBI also urged people not to send money, gift cards, cryptocurrency, or other assets to anyone they have not met in person.

Losses Keep Rising as Crypto Fraud Spreads

Federal complaint data shows how large the problem has become. FBI said IC3 logged 39,949 government impersonation scam complaints in 2025, with victim losses above $833 million across the country. In Kentucky alone, 475 complaints were filed, and losses topped $3.15 million.

Those figures add to a broader FBI concern around crypto-related fraud. IC3 has already warned that cryptocurrency is now used across many scam types because it can move quickly and can be difficult to recover after a transfer is complete.

For people receiving urgent calls about court trouble, police action, or frozen accounts, FBI advice is simple: slow down. The agency said people should “take a beat” before acting and should avoid sharing personal information or making payments in response to threats delivered through unsolicited calls, emails, or messages.

That warning matters because the scam is built around panic. Once urgency takes over, a victim is more likely to follow instructions, visit a crypto ATM, or transfer funds before checking whether the threat is real. FBI says that is exactly what criminals are counting on.