00:00Scammers are increasingly turning to cash-to-crypto kiosks in a wave of fraud that's alarming
00:06regulators and victims alike.
00:08In the US, the Federal Bureau of Investigation says losses from scams involving so-called
00:13Bitcoin ATMs soared to nearly $250 million in 2024, more than twice the year before.
00:21One typical scenario, an elderly victim receives a fake security alert or urgent phone call,
00:28is pressured to withdraw thousands of dollars in cash, then instructed to feed that cash
00:33into a crypto ATM.
00:35The moment the money is sent, recovery becomes nearly impossible.
00:39In Australia, regulators are sounding similar alarms.
00:42The Australian Transaction Reports and Analysis Centre recently fined a crypto ATM operator
00:49for failing to report large cash transactions and for weak anti-money laundering controls.
00:55A clear indication that these machines are being exploited not just for fraud, but for
00:59organized money laundering.
01:02Investigators found that among the top 90 most active users of crypto ATMs, the vast majority
01:07were victims of scams, not perpetrators, highlighting how vulnerable the general public is.
01:13Consumer advocacy groups are now raising the alarm.
01:16These kiosks have become the number one targeted method for scammers, according to the American
01:21Association of Retired Persons, or AARP.
01:25The key danger?
01:26Once the cash is inserted and sent to a crypto wallet, it is almost impossible to trace or recover,
01:32making it ideal for criminal networks.
01:34Meanwhile, operators are under pressure.
01:37US regulators are suing one provider for allegedly failing to implement anti-fraud measures while
01:42profiting from the high fee transactions used by victims.
01:46What can viewers do right now?
01:48Avoid paying anyone via a crypto ATM in response to an urgent phone call or a computer alert.
01:54If you're an insurer, pause, verify through official sources, and don't act under pressure.
02:00For older adults especially, treat any cash to crypto instruction as a red flag.
02:05With losses soaring and machines multiplying, there are tens of thousands across the US, awareness
02:11is perhaps the best defense.
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