Bitcoin News Today: FBI and FinCEN Warn of 99 Surged Crypto ATM Scams Costing $247 Million

The FBI and U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) have issued a joint alert warning the public of a sharp rise in scams involving cryptocurrency ATMs. These frauds have surged in recent months, with victims often lured by unsolicited phone calls from scammers posing as government agents or bank representatives [1]. Scammers typically claim there is an unauthorized transaction or that the victim owes taxes, prompting them to send Bitcoin through cryptocurrency kiosks [1].

According to the FBI’s Internet Crime Complaint Center (IC3), there were nearly 11,000 complaints related to these machines in 2024, with reported losses exceeding $247 million, representing 99% and 31% year-over-year increases [1]. The elderly are particularly vulnerable, with two-thirds of victims over the age of 60 [1]. Once funds are sent via a Bitcoin ATM, they are nearly impossible to recover, making these scams especially damaging [1].

The illicit use of cryptocurrency ATMs is not limited to consumer fraud. Criminal organizations, including drug cartels, are increasingly using these machines to launder money. A Drug Enforcement Administration (DEA) report cited in the FinCEN notice highlights the involvement of groups like “Cartel Jalisco Nueva Generación” in funneling drug trafficking proceeds through these devices [1].

FinCEN has emphasized that many cryptocurrency ATM operators and financial institutions are failing to meet anti-money laundering (AML) and counter-terrorist financing (CTF) obligations. Andrea Gacki, FinCEN Director, stated that stronger compliance and improved monitoring are essential to safeguarding the digital asset ecosystem [1].

Law enforcement officials are also urging the public to remain vigilant. A sheriff from Marshall County warned that no legitimate entity—such as the FBI, police, or banks—would ever request Bitcoin deposits through an ATM [2]. Many machines now feature scam warnings to help deter fraud [2]. In Bend, Oregon, for example, scammers defrauded victims of more than $100,000 through similar tactics, with over 243 scam attempts recorded in the area [3].

The FBI has also highlighted a related scam involving unsolicited packages with QR codes. When scanned, these codes direct victims to websites that solicit sensitive personal and financial information [4]. These tactics reflect the evolving nature of crypto-based fraud, which capitalizes on the speed and irreversibility of digital currency transactions.

As cryptocurrency ATMs become more prevalent, the risks of exploitation are growing. Government agencies are intensifying efforts to address the issue through increased public education and stronger regulatory enforcement [1]. The warnings underscore the need for individuals to stay informed and cautious when handling digital assets.