FinCEN Issues Warning on Bitcoin ATMs Used in Scams

Key Points

1. Fraudulent schemes exploiting crypto kiosks led to nearly $247 million in victim losses in 2024, a 31% increase.

2. Complaints involving Bitcoin ATMs surged by 99% in the past year, with over 10,956 incidents reported to the FBI.

3. Elderly victims (over 60) accounted for more than two-thirds of crypto kiosk fraud losses despite low crypto usage in this demographic.

4. Criminal groups, such as Cartel Jalisco Nueva Generación, use crypto kiosks for money laundering, with Chicago being a key hotspot.

5. FinCEN highlighted concerns about non-compliance among kiosk operators, including lack of MSB registration and weak AML/CFT controls.