Bitcoin ATMs involved in fraud have been deactivated

Law enforcement authorities worldwide are searching for Bitcoin ATMs involved in fraud and scams to deactivate them. As a consequence, more than 600 BTC ATMs have disappeared in two months.

According to data from Coin ATM Radar, “the global Bitcoin ATM network lost 435 and 182 machines in July and August.” In the United States, Bitcoin ATMs decreased by 411 and 258 in July and August, respectively.

As part of this search by law enforcement authorities around the world for BTC ATMs involved in crimes, the United States Federal Trade Commission (FTC) reported “a tenfold increase in scams involving BTC ATMs since 2020”, as criminals take advantage of the “anonymity and fast nature of cryptocurrency transactions. Cryptocurrency ATMs resemble standard ATMs and allow users to purchase cryptocurrencies, such as Bitcoin, using their cards,” the entity added.

Regarding losses due to scams in these BTC ATMs, the FTC revealed that in 2023 they exceeded $110 million. In addition, they emphasized that the main victims are people aged 60 or older, who are three times more likely to be scammed under deceptive or fraudulent promises.

In Germany, on August 20, the Federal Financial Supervisory Authority “started a crackdown on cryptocurrency ATMs, seizing 13 machines in 35 locations.”

The entity indicated that these ATMs could be the focus of criminal activities “if the operators do not apply the appropriate “Know Your Customer” controls on transactions over 10,000 euros.”

In Singapore, on the other hand, cryptocurrency ATMs are prohibited. The measure was applied by the Monetary Authority of the country “to regulate the advertising of cryptocurrencies among the public.”

M.Pino

Source: cointelegraph

(Reference image source: John Paul Cuvinar in Unsplash)

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