Crypto ATMs becoming Source of Illicit Transactions, Bitcoin, Ether, Solana, Litecoin

The crypto segment has grown rapidly in the last few years. The cases of scams related to this segment are also increasing. Crypto ATMs that allow purchasing cryptocurrencies with cash are becoming a major source of illegal transactions. Apart from cash, people can also buy cryptocurrencies through debit and credit from these ATMs.

According to a report by blockchain intelligence firm TRM Labs, over the past four years crypto ATMs have processed illegal transactions worth approximately $160 million. This report states, “Last year, the share of illegal transactions in the crypto ecosystem was 0.63 percent, while such transactions in the total volume of crypto ATMs were about 1.2 percent. Last year, more than three million dollars were transferred through crypto ATMs. The scams were sent to crypto addresses.” A large number of crypto ATMs have been installed in countries like the US, Spain, El Salvador and Australia.

Action is also being taken against crypto ATMs in some countries. Last month, 13 Bitcoin ATMs were seized in Germany for violating the Banking Act. Recently, America’s Federal Bureau of Investigation (FBI) had informed that there has been a 53 percent increase in these scams last year. Regulators in some countries have prepared to make rules for the crypto segment to deal with this problem.

The FBI had said in a report that last year, fraud under the guise of investment in cryptocurrencies increased to $3.94 billion. Last year, people had lost approximately $2.57 billion in these frauds. In such scams, fraudsters offer crypto-related investment advice and ask people to invest money in fake tokens. In this, the lure of getting higher returns is given. Generally, social media platforms like Facebook and Twitter are used to trap people in this scam. The FBI has reported that last year it received approximately 8,80,400 complaints of financial scams. There was a loss of approximately $12.5 billion in these scams. The FBI has asked those investing in crypto to enable two-factor authorization so that their funds cannot be transferred to other accounts without their permission.