The Financial Crimes Enforcement Network (FinCEN) has documented a 31% increase in cryptocurrency kiosk fraud incidents throughout 2024, resulting in nearly $247 million in losses. Regulatory deficiencies and the rapid expansion of Bitcoin ATMs nationwide were identified as key enablers of the surge.
The number of Bitcoin ATMs has ballooned from 4,100 units in 2019 to over 37,000 in 2024, creating abundant opportunities for fraudulent activity. Elderly individuals aged 60 and above suffered disproportionate impacts, accounting for more than two-thirds of total scam losses despite showing low cryptocurrency adoption rates.
FinCEN has issued formal guidance urging financial institutions to enhance suspicious activity monitoring and cautioning consumers about exploitative features including transaction fees reaching 25% and limited identity verification protocols at crypto kiosks.
Global regulators are responding with intensified oversight measures, including New Zealand’s proposal for a complete ban on cryptocurrency ATMs.