Scammers are using crypto ATMs to steal millions of dollars in the U.S., according to a new report by the Organized Crime and Corruption Reporting Project (OCCRP) and the Miami Herald. In one incident, a 77-year-old Chicago woman lost $9,000 to a fraudster posing as a Federal Trade Commission agent.
The Federal Bureau of Investigation (FBI) estimates that over $120 million was stolen through crypto ATM scams in 2023. The OCCRP attributes the rise in scams to lax identification requirements and inconsistent state regulations.
Authorities note that crypto transfers are traceable, but scammers use obfuscation tactics like mixers and bridges to hide their tracks. In 2023, over 4,300 cases were reported, with nearly half involving users aged 60 or older, yet only 10% saw restitution.
CoinATMRadar data shows there are over 32,500 crypto ATMs in the U.S., up from just 4,210 in January 2020. Despite the rise in fraud, significant arrests have been made, including Victoria Jacobs and Robert Taylor, who faced severe penalties.
The long-term importance lies in tightening regulations and improving tracking methods to safeguard public funds and prevent future scams.
