CNN has a great piece out about how Crypto ATMs are used to scam people out of their money. The companies behind the ATMs, at best, do not care that they are being used to hurt folks, as the profits are too good for them to let go.
Crypto ATM companies have argued fraud is not a significant driver of business, with some highlighting a report by the analytics group TRM Labs, which found that 1.2% of cash-to-crypto transactions were illicit in 2023.
But even the analytics group behind that report acknowledged in a statement to CNN that "the reality is clear: a significant share of scams and fraud move through these machines."
Another leading analytics firm recently noted a "surge" of crypto ATM scams last year. Bitcoin Depot itself has warned its investors of the issue as early as 2022, disclosing in financial records that its machines and services could facilitate "fraud, money laundering, gambling, tax evasion, and scams."
For police who have investigated crypto ATMs, there's little doubt: scammers love to use the machines.
CNN
Their scam, at heart, is not new. Someone posing as a trusted official claims you owe money or have committed a crime and demands cash payment at a Crypto ATM to resolve the issue. The money disappears. CNN reports that some law enforcement officers became so frustrated that they used a saw to dismantle the machines and recover the money for the victims. The ATM companies pursued them in court to recover the money. It appears that Crypto ATM companies are siding with the scammers.
Previously:
• Father of 2 young boys loses $5 million after falling for terrifying new Google scam
• Man loses $230M crypto fortune after falling for scammers' plot
• Rural Kansas banker steals $47M in crypto pig butchering scam
• The crypto scam behind those weird text messages
