Reported by Kevin Hall

(Excerpt shown below. To read full report, go to: https://www.occrp.org/en/news/fincen-calls-for-vigilance-on-crypto-kiosk-activities)

The Treasury Department on Monday warned financial institutions to monitor and report suspicious activity at so-called crypto ATMs, which have been used to launder proceeds from drug sales and other criminal activity.

Formally known as convertible currency kiosks, or CVC kiosks, these machines operate similar to automated bank teller machines. They allow customers to exchange real currency for virtual currencies and vice versa.

“While CVC kiosks can be a simple and convenient way for consumers to access CVC, scammers and other illicit actors can also exploit their simplicity and convenience,” said a first-of-its kind notice about kiosks from the Financial Crimes Enforcement Network, or FinCEN. 

An OCCRP investigation in July 2024 warned how these machines were increasingly being used by criminal networks at home and abroad to exploit seniors. For that report, the FBI shared its first public national estimate on the scope of the problem, suggesting losses from scams carried out using crypto kiosks exceeding $120 million in 2023.

In its notice Monday, FinCEN offered new FBI data points on the scope of the problem. It said the FBI’s Internet Crime Complaint Center (IC3) received 10,956 complaints of fraudulent or criminal schemes involving crypto kiosks