US Warns of Surging Bitcoin ATM Fraud as Treasury Reports $247M in Victim Losses

FinCEN warns that Bitcoin ATM fraud has surged in the US, with nearly 11,000 complaints and estimated victim losses of $247 million in 2024. The Treasury Department's Financial Crimes Enforcement Network notes that scams primarily target older people and have also been used for money laundering. FinCEN urges financial institutions to take proactive measures to identify and report suspicious activity involving Bitcoin ATMs.

The Financial Crimes Enforcement Network (FinCEN) has issued a stern warning about the escalating problem of Bitcoin ATM fraud in the United States. According to FinCEN, there were nearly 11,000 complaints and an estimated victim loss of $247 million in 2024, representing a significant increase from previous years [1].

The notice highlights that the majority of these scams target elderly individuals, who are often seen making large deposits at Bitcoin ATMs. Additionally, FinCEN has identified that some crypto ATMs have been used for money laundering activities [1, 2]. The network has provided several red flags for financial institutions to look out for, including multiple payments below the suspicious activity reporting level, new customers making large deposits, and ATMs that do not require identification beyond a phone number or email address [1].

The Treasury Department's FinCEN has urged financial institutions to take proactive measures to identify and report suspicious activity involving Bitcoin ATMs. This includes filing suspicious activity reports (SARs) when such activity is detected [1]. The network has also noted that non-compliant crypto ATM operators may lack proper policies and procedures, making them more susceptible to being used by criminal organizations [2].

The surge in Bitcoin ATM fraud underscores the need for robust regulatory measures and vigilance from financial institutions. As the use of cryptocurrencies continues to grow, it is crucial that both regulators and financial institutions work together to mitigate the risks associated with these transactions [2, 3].

References:
[1] https://www.atmmarketplace.com/news/fincen-warns-of-rising-bitcoin-atm-scams/
[2] https://bitcoinist.com/if-bitcoin-hits-1m-this-could-be-americas-biggest-public-firm/
[3] https://www.theblock.co/post/365513/fincen-financial-crypto-atm-fraud-criminal-organizations-elder-scams