Bitcoin ATM Scams on the Rise: A Kansas Family’s $20,000 Loss

Kansas regulators are increasingly concerned about the growing number of fraud cases linked to banks and, particularly, Bitcoin ATMs. A recent case involving a family in Linn County highlights the devastating impact of these scams, with the Ungeheuer family losing a staggering $20,000 after falling victim to a sophisticated scheme that began with a simple message on an iPad.

How the Scam Unfolded

Charleta and Dillard Ungeheuer, long-time residents and business owners in Centerville, Kansas, found themselves targeted by a scammer posing as Apple support. In November 2025, Charleta noticed a suspicious message on her iPad regarding an unrecognized purchase. Believing it to be legitimate, she contacted the number provided, unknowingly initiating a harrowing ordeal.

“I dialed that number thinking I’m going to get what I needed,” Charleta recounted. “But this man answered, and he started questioning me.” Investigators later confirmed the call was fraudulent and had no affiliation with Apple.

Over several hours, the scammer employed pressure tactics and threats, warning Charleta of potential legal repercussions if she didn’t comply. “He had me scared that after it was said 20,000, it would be the local authorities or the KBI or the FBI would be getting me,” she explained. Under duress, Charleta withdrew $20,000 from her bank account – funds initially transferred from her husband’s business account.

The scammer then instructed her to drive 90 minutes to a Bitcoin ATM in Johnson County, Kansas, where she deposited the cash while still on the phone. Once the funds entered the digital wallet controlled by the scammer, recovery became virtually impossible.

The Difficulty of Recovering Funds

Dillard Ungeheuer expressed his frustration with the ease with which the large sum of money was withdrawn. “The rest of the story to me is how easily she got 20,000 out of a bank we’ve been in for 45 years without a red flag showing up.” Charleta reported that she wasn’t questioned about the purpose of the withdrawal.

Kansas Bank Commissioner David Herndon explained that financial institutions generally cannot deny legitimate withdrawal requests. However, he emphasized the importance of employee vigilance. “Somebody could’ve and in my view should’ve asked what is going on here,” Herndon stated. He noted that banks train staff to identify unusual activity, particularly large cash withdrawals that could be linked to scams.

Rising Trend of Crypto ATM Scams

Law enforcement agencies across the region are witnessing a surge in scams involving Bitcoin ATMs, also known as virtual currency kiosks. These machines allow users to convert cash into cryptocurrency using a wallet address or QR code. Police body camera footage from Liberty, Missouri, shows officers intervening to prevent an elderly man from depositing $30,000 into a Bitcoin ATM after a similar scam.

Prosecutors in Clay County, Missouri, estimate that scammers have stolen approximately $3 million through Bitcoin ATM-related scams in the past two years. The typical scam involves a fraudulent message or call, escalating pressure, and instructions to withdraw cash and deposit it into a Bitcoin ATM.

“Once the money is deposited into that crypto atm, it’s pretty much gone,” Herndon warned.

Legislative Efforts to Combat Fraud

Kansas lawmakers are considering House Bill 2515, the Virtual Currency Kiosk Consumer Protection Act, which aims to establish requirements for Bitcoin ATM operators, including consumer protections and potential transaction limits. Missouri lawmakers are also reviewing a proposal to allow the state to hold Bitcoin as part of its investment portfolio.

Protecting Yourself from Bitcoin ATM Scams

The Ungeheuer family’s experience serves as a stark reminder of the dangers of these scams. Regulators and law enforcement urge consumers to:

• Verify unsolicited messages and calls.
• Avoid calling phone numbers provided in suspicious alerts or emails.
• Consult a trusted financial institution or law enforcement agency before withdrawing large sums of cash under urgent instructions.

As Bitcoin ATMs become increasingly prevalent, vigilance and awareness are crucial to protecting yourself from falling victim to these sophisticated scams. Learn more about protecting yourself from cryptocurrency scams at the Federal Trade Commission website.