The US Financial Crimes Enforcement Network (FinCEN) has cautioned that fraudsters are increasingly targeting victims through scams involving cryptocurrency ATMs.
In a recent advisory, FinCEN called on banks and other financial firms to be vigilant about any dubious behavior related to digital currency kiosks (crypto ATMs). The agency noted that while the machines can offer a quick and user-friendly way for people to buy or sell digital coins, they are also easy targets for criminals and con artists.
Crypto ATMs function much like traditional cash machines, but with the added function of converting traditional currency into different cryptocurrencies. Users insert bills or coins, complete simple steps on a touchscreen, and receive crypto in a linked wallet address.
Andrea Gacki, FinCEN’s director, highlighted that criminals adjust quickly and jump on new tools for fraudulent purposes. She stated that fraudsters are determined in their attempts to defraud users and have learned to exploit novel platforms, including crypto ATMs.
Gacki also reaffirmed the U.S. government’s dedication to safeguarding the growing ecosystem of digital assets. She pointed out that financial service providers are vital allies in the effort to prevent fraud and other criminal misuse.
Data from 2024 shows the FBI got nearly eleven thousand reports related to crypto ATM incidents, with total losses reaching approximately $246.7 million. That marks almost double the number of complaints (99% increase) and a 31% jump in total money lost compared to the year before.
Coin ATM Radar data shows that the number of Bitcoin ATM locations in the U.S. went from about 4,250 at the beginning of 2020 to over 30,600 by August 2025.
The FinCEN advisory outlines different schemes used by criminals involving crypto ATMs. It calls out a surge in scam payments made through these machines, including fake technical support prompts or imposters claiming to represent banks and pressuring victims into transferring crypto. Many of those targeted are older individuals, who often bear the brunt of such scams.
The agency also provided a list of warning signs providers should look out for and reminded regulated entities of their reporting duties under existing law.
The advisory comes at a time when there is growing pressure to tighten regulation around the crypto ATM. Earlier this year, Sen. Dick Durbin proposed legislation that would require operators to officially register, share the precise locations of their machines with the Treasury, and provide detailed receipts that allow for tracing.
The bill also suggests transaction limits on new users and a mechanism for reimbursing victims of fraud.
The crypto industry and its leading firms like HIVE Blockchain Technologies Ltd. (NASDAQ: HIVE) (TSX.V: HIVE) will be following the discussions on this and other bills that could reshape the crypto landscape in the U.S.
About CryptoCurrencyWire
CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.CryptoCurrencyWire.com
Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer
CryptoCurrencyWire
New York, NY
www.CryptoCurrencyWire.com
212.994.9818 Office
Editor@CryptoCurrencyWire.com
CryptoCurrencyWire is powered by IBN
The U.S. Securities and Exchange Commission (SEC) recently launched an initiative called “Project Crypto,” aimed…
Argentina is stepping up its efforts to stop the use of crypto in the financing…
PayPal has rolled out a new feature that lets users pay with crypto directly through…
As digital currencies become more connected with mainstream finance, major players in the industry are…
While Bitcoin remains the top pick for most corporate treasuries, a growing number of companies…
Crypto-related stocks experienced a surge on Monday as Ether reached its highest price of the…