San Antonio Cracks Down on Bitcoin ATM Scams

San Antonio is introducing new regulations aimed at curbing Bitcoin ATM fraud. Starting July 1, all 193 cryptocurrency ATMs across the city must display warning notices about common scam tactics. The measure comes in response to 660 reported incidents and approximately $39 million in losses recorded between January 2024 and April 2026.

According to local police, fraudsters typically follow a well-established pattern. They impersonate law enforcement officers, government officials, utility providers, or other trusted institutions, claiming that the victim faces an arrest warrant, unpaid fines, or overdue bills. Victims are then instructed to deposit cash into a Bitcoin ATM while scammers remain on the phone throughout the process, preventing them from speaking with family members, store employees, or emergency services.

Nearly 38% of identified victims were at least 66 years old, although cases also involved teenagers and people in their nineties. In 88% of reported incidents, losses remained below $50,000. However, authorities also documented four cases in which individual victims lost more than $1 million.

The newly required warning signs, displayed in both English and Spanish, will explain the most common fraud schemes and encourage anyone feeling pressured to call 911 before making a payment. Operators who fail to install the required notices face fines ranging from $100 to $500 for each day they remain in violation.

Similar measures are now being considered across Texas. The sheriff of Smith County has called for a complete ban on cryptocurrency ATMs after an elderly woman lost $13,000 in a scam allegedly orchestrated by an inmate serving time in a Georgia prison. Discussions with state officials have also involved members of the Texas Legislature and the Texas Financial Crimes Intelligence Center. According to authorities, cryptocurrency ATM bans are already in place in Indiana, Tennessee, and Minnesota.

The industry itself is also facing mounting challenges. Bitcoin Depot, which operates more than 9,000 cryptocurrency ATMs across North America, filed for Chapter 11 bankruptcy protection in May after reporting a nearly 50% decline in revenue during the first quarter of 2026. Earlier this year, the Massachusetts Attorney General sued the company, alleging that more than half of the revenue generated by its ATMs in the state came from transactions linked to fraudulent activity.

The U.S. Secret Service continues to warn that cryptocurrency transfers are processed quickly, making it extremely difficult to recover funds once they have been sent. Police also emphasize that no legitimate government agency or service provider will ever request payment through a Bitcoin ATM. Even if the caller knows personal information or appears to be calling from an official phone number, it should be treated as a major warning sign.