U.S. Bitcoin ATM Company Cracks Down on Fraud, Requires ID Verification for Every Transaction

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The largest cryptocurrency ATM operator in the United States has introduced a stringent security measure requiring ID verification for every transaction in order to fundamentally block increasingly sophisticated fraud crimes.

According to cryptocurrency media outlet Cointelegraph on February 25 (local time), Bitcoin Depot announced a new enhanced compliance policy mandating ID verification for all transactions conducted at its kiosks. The measure will be rolled out gradually across its nationwide network starting in February 2026, requiring every customer purchasing Bitcoin (BTC) to prove their identity regardless of transaction amount. Bitcoin Depot is the first major operator in the industry to collect ID information for every individual transaction, thereby strengthening security standards.

Previously, verification was required only during the initial use of the service, but now existing users must undergo authentication for every transaction. Bitcoin Depot explained that this measure can effectively prevent identity theft, account sharing, and illegal account takeover attempts. The move is regarded as going beyond internal guidelines to voluntarily exceed legally mandated KYC requirements, reinforcing the company’s leadership in regulatory compliance within the industry.

Additional tailored safeguards have also been strengthened to prevent fraud targeting elderly individuals. CEO Brandon Mintz emphasized, “Enhancing security is an essential process to make access to digital assets safer and more reliable, and our company will set a new standard for the industry.” Chief Compliance Officer Philip Brown added that requiring ID submission from all customers has significantly improved the company’s ability to detect and block suspicious fraudulent activities at an early stage.

This policy comes amid mounting regulatory pressure from state attorneys general as fraud losses involving crypto ATMs have surged sharply. According to an FBI report, losses from crypto ATM scams reached $246.7 million in 2024 alone, with damages increasing each year. Since appointing Brown as Chief Compliance Officer in July 2025, Bitcoin Depot has invested substantial resources to enhance blockchain monitoring and consumer protection systems.

Bitcoin Depot operates more than 8,800 ATMs across 47 U.S. states and thousands of retail locations, connecting cash-preferred investors to the digital financial ecosystem. The strengthened security policy is expected to serve as a significant milestone in preventing misuse by illicit actors as the digital asset market matures and in enhancing overall service trust. The company plans to further reinforce fraud prevention alert systems and cooperate closely with law enforcement agencies to foster a safer transaction culture.

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