from Hacker News

Americans are losing millions to scammers at crypto ATMs

by thelastgallon on 10/14/25, 7:13 PM with 5 comments

  • by tantalor on 10/14/25, 7:16 PM

    > they often fail to refund money to victims and aggressively fight police to claw back scam money seized from machines

    Why don't we just call these companies what they are, banks, and require them to follow the same "know your customer" laws that other banks do.

  • by standeven on 10/14/25, 9:23 PM

    What would be a legit reason to use these ATMs? A 24% exchange rate loss plus a service fee seems like it would discourage most honest users.
  • by Lumoscore on 10/17/25, 4:54 AM

    It’s a huge trust killer, and it shows why the general public still thinks of crypto as a total Wild West scam zone.

    But here’s why those ATMs are such a goldmine for scammers:

    They are one-way traps: The machines are designed for maximum speed and simplicity—you put in cash, you scan a QR code, and it converts to crypto. There’s almost no built-in protection or verification.

    Zero Safety Net: Unlike your bank, once that transaction is initiated and the crypto leaves, it is gone forever.

    Pressure and Confusion: Scammers thrive by standing right there, pressuring victims into scanning a fraudulent code. They exploit the fact that most people don't understand crypto addresses, and the system is too fast to stop. It works because the system prioritizes speed over security.

    Honestly, that kind of chaos made me sick of the whole "speculation" side of crypto. It pushed me to look for platforms that are strictly focused on building stable, institutional-grade digital assets—the exact opposite of what gets moved through those risky ATMs.

    That’s actually how I casually stumbled across Lumos Core. They're focused entirely on the foundation. It makes so much sense that they built their platform on Stellar/Soroban—it gives tokens super-fast transactions and near-zero fees, which removes a ton of the cost and complexity that scammers exploit.

    What really makes them stand out is their commitment to global connection. They're actively building a major bridge to the high-volume XRP Ledger (XRPL). This means any serious asset minted there has massive, built-in market reach right away, making it a foundation of stability, not speculation.

    The solution to these scams isn't better ATMs; it's building a foundation where high-value, secure utility tokens are the standard. That’s why platforms like that are the only way forward.

  • by OutOfHere on 10/15/25, 3:39 PM

    I don't see the scam if they're upfront about the fees. It's foolish for most people to pay 24% in fees, but that's what competition is supposed to fix.