Bitcoin and Crypto ATM Scams
A new report by the Organized Crime and Corruption Reporting Project (OCCRP) and the Miami Herald revealed that scammers are utilizing crypto ATMs to steal millions of dollars in the United States. The FBI reported losses of over $120 million from crypto ATM scams in 2023, with older individuals being targeted by fraudsters posing as government officials.
Rising Cases of Crypto ATM Fraud
The increasing cases of crypto ATM scams can be attributed to various factors, including the lack of stringent identification requirements by operators and inconsistent regulations across states. Authorities mention that on-chain crypto transfers are traceable, but scammers use obfuscation tactics to make tracking coins difficult, utilizing mixers and bridges to cover their tracks.
Growth of Crypto ATMs in the US
Despite the surge in crypto ATM fraud, the number of installations in the US continues to rise, with over 32,500 machines reported in the country. Law enforcement has made significant arrests and prosecutions of individuals involved in using crypto ATMs for illegal activities, with cases resulting in lengthy prison sentences and forfeitures of millions in cryptocurrency.
