The U.S. Financial Crimes Enforcement Network (FinCEN) has issued a warning regarding the increasing prevalence of crypto ATM scams, which criminals exploit to steal money from unsuspecting victims.

In 2024, the FBI reported nearly 11,000 complaints related to crypto ATMs and kiosks, leading to losses of approximately $246.7 million, reflecting a staggering 99% increase in complaints and a 31% rise in losses compared to the previous year.

FinCEN's director, Andrea Gacki, emphasized the need for financial institutions to enhance surveillance of suspicious activities surrounding cryptocurrency kiosks to combat this growing threat.

In response to the rising fraud, Senator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act, which proposes daily transaction limits for new users and requires operators to monitor transactions for suspicious activity.

This legislation aims to protect vulnerable users, particularly seniors, who are frequently targeted by scammers utilizing Bitcoin ATMs as a payment method.

Various states in the U.S. are implementing measures such as transaction limits and licensing requirements for operators to address the fraud associated with Bitcoin ATMs.

ATM operators are being urged to monitor for suspicious activities, such as multiple payments made just below reporting thresholds across different kiosks.

Globally, jurisdictions are tightening regulations on cryptocurrency ATMs, with New Zealand planning a complete ban and Australia enforcing stricter oversight and cash limits.

Many Bitcoin ATM operators remain non-compliant with regulatory requirements, failing to register as 'money services businesses' and lacking essential anti-money laundering controls, which facilitates high anonymity and fees.

Regulatory bodies are advocating for stricter compliance measures, including transaction limits and mandatory consumer warnings, to mitigate risks associated with crypto ATM usage.

Elderly individuals over 60 are disproportionately affected by these scams, accounting for more than two-thirds of crypto kiosk fraud losses, with scammers often convincing them to drain their retirement accounts for cryptocurrency investments.

Tech support scammers are responsible for nearly half of all kiosk fraud, frequently initiating contact through fake pop-ups or calls and directing victims to complete transactions at local ATMs.