Treasury Issues Urgent Bitcoin ATM Scam Alert After $247M in Victim Losses

Key Points

1. FinCEN reported $247 million in losses from Bitcoin ATM scams, with elderly victims (over 60) accounting for over two-thirds of losses and median losses reaching $10,000 per incident.

2. Fraud losses surged from $12 million in 2020 to $114 million in 2023, with $66 million lost in the first half of 2024 alone.

3. New Zealand banned cryptocurrency ATMs and imposed a $5,000 cap on international cash transfers, while Australia introduced stricter rules for crypto ATM operators.

4. California fined Coinme $300,000 for violating transaction limits, and Washington banned Bitcoin ATMs in certain areas to curb fraud.

5. Senator Dick Durbin introduced the Crypto ATM Fraud Prevention Act, proposing daily transaction limits ($2,000 for new users, $10,000 over 14 days) to protect vulnerable users.