Scammed Twice: Part 1, The Machine Gets Its Cut

In Part One of Scammed Twice, we move past the emotional manipulation and into the machinery that quietly profits from it. This episode exposes how cryptocurrency ATMs have become a critical—and largely unregulated—link in the scam pipeline.

I walk you through exactly what happened when I was directed to a Bitcoin ATM, how much these machines take from victims in fees, and why scammers rely on them so heavily. We examine who actually uses crypto ATMs, what companies claim about their purpose, and what state investigations are beginning to uncover about how often these machines are tied to fraud.

This isn’t about bad decisions or lack of intelligence. It’s about systems designed without meaningful safeguards—and the people who pay the price.

Part One lays the groundwork. In Part Two, we’ll pull back the curtain even further.

Transcript

 Scammed Twice: The Machine Gets Its Cut - Part 1 

Today I want to talk to you about crypto ATM’s.  What they are and why you should NEVER agree to use one.

If you WANT to use one, it should be 100% your idea, from start to finish.

Let me be very clear:

If anyone asks you to send money through a Bitcoin ATM, you’re being scammed not once, but twice.

First by the person manipulating you — and then by the machine that quietly takes over 30% of your cash.

That’s not a glitch. It’s the business model.

The owners of these machines profit handsomely from it. And when victims lose everything, it’s recorded as just another transaction

In most states - including Utah, where I live - there's nothing stopping them.

I know most of you are probably asking…wait, what?  What the heck is a Bitcoin ATM?  Well, I’d never heard of them either — until I got scammed

Bitcoin ATM companies call this 'convenient.' Let me show you what that convenience actually looks like.

First, download the Bitcoin Depot app and create an account. Then drive to your bank to withdraw cash—unless you keep thousands lying around your house. Drive to the Bitcoin ATM. Try not to make eye contact with anyone there, because there’s something about this whole situation that feels off, even if you can’t quite name it.  

Scan your QR code. Feed in bills one at a time—and I mean one at a time. Each bill takes several seconds while the machine examines it.

When I sent $4,000, I stood there feeding hundred-dollar bills into this machine, one by one, for nearly 30 minutes. Forty bills. Each one taking several seconds to process.

Then drive home and wait another 30 minutes to an hour for the Bitcoin to show up in your wallet. Finally, transfer it to the receiver's wallet.

That's six steps. Multiple trips. Multiple waits. 

In this digital age, Bitcoin ATMs don't move technology forward. They move it backward.  

 The Hidden fees: 

The machine — claims it charges a $3 fee, and it does. But here's what they don't tell you: the price of  Bitcoin they are selling you, could be 20-40 percent ABOVE the going market rate.

So when I sent $4,000? Only about $2,800 worth of Bitcoin goes to the receiver. And when I say the receiver, I mean the scammer!  The machine just pocketed $1,203 in that transaction.

If that sounds unbelievable to you — I have receipts.  Let me show you.

What This Receipt Shows
Market Price: $51,755.00 USD

Bitcoin Sales Price: $67,333.25 USD
 → That’s roughly 30% above the going market rate

This is one of my receipts I kept when I was getting scammed.  Although I have many of these receipts, I’m just going to show you one more, so you can see how predatory this company is. 

This time I was sending less, $1450 but their take was even higher this time.    

What This Receipt Shows

• Market Price: $66,789 USD
  
  
  
• Bitcoin Sales Price: $90,632.67 USD
   → That’s almost 36% above market

Of the $1450 I put into the machine this time, Bitcoin Depot pocketed $383, so that leaves the scammer with only $1067.  

As I came to realize that so much was being lost at the ATM, I ended up having to get about ⅓ more cash out than I planned on sending, just to cover the extra fees.

So as I'm getting scammed, this machine is taking a huge profit on my ever increasing losses!

You know what's infuriating? I never really knew what was happening to the rest of the money. When I questioned it, my scammer would tell me, "Bitcoin's not a stable coin—the price fluctuates during transactions."

It sounded technical. It sounded reasonable. And here's the thing: he was right—Bitcoin DOES fluctuate. But 30% markups aren't fluctuation. They're robbery.

I didn't understand what the receipt was actually telling me. And that confusion? Not accidental. 

Bitcoin Depot designed those receipts to hide their markup. My scammer provided a plausible lie to explain it away. I was being confused from both sides.

Nowhere do they tell you clearly that they're charging you 25-35% more for Bitcoin than the going market rate.

It wasn’t until I began researching this episode that I finally understood what the receipts were hiding.

And that is, to take the market price for bitcoin and then increase that price for their “customers” to purchase so they can get their cut in that price manipulation.  This is the business model for these companies.

Nowhere on the receipts are they pointing out what they are pocketing on this transaction.  And just looking at the receipt quickly doesn’t tell the story.  They are hoping their customers just accept the charges and don’t question.

And because of the anonymity of these transactions — these machines have become the scammer's tool of choice."    

Right now, these machines are flying under the radar of most people and government officials, but scammers are well aware of the existence of these machines and direct their targets where to find them and how to use them.  

In fact, when my scammer wanted me to use one to send money to him, he also sent me a picture of where the closest machine was to my home, which was only approximately a mile from my house

In Utah alone, there are approximately 400-500 Bitcoin ATMs. That's one machine for roughly every 6,000-7,000 people in the state. These machines are everywhere.Just look at how many are in my vicinity.  This is the main population base here in Utah.  The numbers of these machines in gas stations and convenience stores are exploding.

For those who are curious, after this episode go and google, “crypto ATM machines near me.”  You may be surprised to find just how many are close to you.

Ever wonder why you don't see these machines in bank lobbies? I’m pretty sure it’s because banks wouldn't allow something this predatory on their property.

As I started getting more and more curious about these machines, I decided to go back to that convenience store where I sent my money from — and talk to the clerk who worked there.

I went in during the morning and asked her how many times she would see someone come in and use the machine.  She replied that during her shift, she only saw it being used 2-3 times per month. 

I asked her who she saw as the main people who used the machine.  She told me it was mainly older adults, like myself.  We chatted for a few minutes and then she told me of a situation she had witnessed with someone using the machine.  

She related the story of a man who came in with 20,000 dollars and fed all of it in the machine, which took close to a couple of hours. 

Once he completed his deposit, (which I was told was his entire life savings but I can’t confirm) he went out to his car and just sat there for a while.  That clerk called the police because she could tell something was wrong.  The next day she learned that the man had gone home and committed suicide.

I never found out his name. I don't know if he was a husband, father, a grandfather, a veteran. 

I don't know who he thought he was sending that money to.

What I do know is this:

Bitcoin Depot likely made between $5,000 and $6,000 in profit from his desperation that day.

The revenue was logged. The transaction was finalized. And a man is dead.

That's the business model.

There are over 31,000 Bitcoin ATMs in the United States.

To put that in perspective: there are about 13,000 McDonald's locations in America. And about 17,000 Starbucks.

Bitcoin ATMs outnumber McDonald's. They outnumber Starbucks.

In fact, there are as many Bitcoin ATMs as McDonald's and Starbucks combined.

Think about how often you pass a McDonald's or a Starbucks. Now realize: you're passing just as many Bitcoin ATMs. You just don't notice them yet.

Every single one of them is a potential crime scene. Because when scammers tell their victims 'go to a Bitcoin ATM,' these machines are ready and waiting to take their cut.

And in most states, including Utah, there's nothing stopping them.

Americans lost $247 million to Bitcoin ATM fraud in 2024. In 2025, that number has ballooned to $333 million.

I wonder, how many of those stories ended like this one?

How many families are planning funerals while Bitcoin Depot counts profits?

We don't know. Because most victims never report. They're too ashamed. Too devastated.

But every single one of those transactions? Bitcoin Depot and companies like them took their cut anyway.

So what do you do? How do you protect yourself and the people you love?

Here are the rules. They're simple. They're absolute.

Rule #1: This is the more important one.  If someone asks you to use a Bitcoin ATM to send money, it's a scam.

 Period. No exceptions. 

I don't care if they say they're your grandson, your romantic partner, a government agent, tech support or the IRS. 

Legitimate people, legitimate companies do NOT ask you to use Bitcoin or crypto ATMs.

Rule #2: If you've already sent money, act immediately.

• Report to FBI's IC3.gov
• Report to local police
• Contact the Bitcoin ATM operator, but you most likely won’t receive any help from them.
• In some states like Nebraska and Iowa, you may have refund rights if you report within 30-90 days

Rule #3: Urgency is the weapon. Recognize it. Interrupt it. Trust your gut. If someone is rushing you, pressuring you, or insisting you stay on the phone while you’re at the machine—that’s not a coincidence.
 That is deliberate psychological control.  This is the coercive control that Jennifer French was talking about in Episode 3.

Scammers know that if they give you time to pause, to think, to step outside, or to talk to someone else—the spell breaks.

That’s why they:

• Keep you on the phone
  
  
  
• Tell you not to talk to anyone
  
  
  
• Say “this has to be done right now”
  
  
  
• Create fear, shame, or false deadlines

Here’s the point:
No legitimate transaction requires secrecy, urgency, or isolation. Ever.

If you are already at the machine:

• Stop feeding cash
  
  
  
• Take your hands off the screen
  
  
  
• Hang up the phone
  
  
  
• Walk out of the store
  
  
  

You do not owe anyone an explanation.
 You don’t need permission to stop.
 Embarrassment is temporary. Losing your life savings is permanent.

If it feels confusing, overwhelming, or rushed—that confusion is not accidental.
That means the scam is working.

Rule #4: Warn your loved ones — NOW. 

People over 60 are three times more likely to fall for these scams. Show this episode to your parents, grandparents, friends, neighbors. Have the conversation before they need it.

These are the rules. They'll protect you.

But here's what kept bothering me: While we're out here warning people, someone is still making millions off the ones who don't hear the warning in time. Someone is installing more machines every day. Someone is profiting from every single scam.

So I started digging. Who owns these machines? Who's behind all this?

Next episode, I'll introduce you to the man behind the curtain— He made the Forbes 30 Under 30 entrepreneur list for 2024 for creating this successful business.  

He’s the CEO of Bitcoin Depot, a company that's now publicly traded on NASDAQ. And I'm going to show you exactly what he's selling.

Until then, remember: if you've been the victim of a Bitcoin ATM scam, report it. Talk about it. Break the silence.

This is The Romance Scam Rebellion. Thanks for listening.

Text overlay:

If you or someone you know is in crisis, please call or text 988 for the Suicide and Crisis Lifeline.