Outside Source
Law enforcement authorities are proactively seeking out and closing Bitcoin ATMs that are frequently involved in extortion and scams.
News
Own this piece of crypto history
More than 600 Bitcoin (BTC) ATMs went offline globally in the first two months of Q3 2024, with the United States recording the most shutdowns. This comes at a time when law enforcement authorities are proactively seeking out and closing Bitcoin ATMs that are frequently involved in extortion and scams.
According to data from Coin ATM Radar, the global Bitcoin ATM network lost 435 and 182 machines in July and August. The US contributed the highest to the statistics by reporting a reduction of 411 and 258 ATMs during the timeframe.
Global Bitcoin ATM network lost 435 machines in July.
Source: Coin ATM Radar
On Aug. 7, a local government committee in Chico, California, addressed the regulation of Bitcoin ATMs. Andy Pickett, chief administrative officer at the County of Butte, spoke about the initiative to regulate these ATMs, proposing they be treated “more like a bank.”
On the other hand, the United States Federal Trade Commission (FTC) has reported a tenfold increase in scams involving Bitcoin ATMs since 2020, with fraudsters taking advantage of the anonymity and rapid nature of cryptocurrency transactions. Crypto ATMs resemble standard cash machines and allow users to purchase cryptocurrencies, like Bitcoin, using their cards.
Source: FTC
Bitcoin ATM scams on the rise
FTC data reveals that losses from Bitcoin ATM scams surpassed $110 million in 2023, with individuals aged 60 and older being three times more likely to be targeted. These scams typically involve individual fraudsters persuading victims to transfer their funds using Bitcoin ATMs under misleading or fraudulent promises.
Related: Cop intercepts $40K Bitcoin ATM scam by Chase Bank impersonator
As of Sept. 5. Coin ATM Radar data suggests that 38,790 crypto ATMs are active worldwide.
Globally, about 39,000 crypto ATMs exist today. Source: Coin ATM Radar
The US and Canada together make up about 91% of the total Bitcoin ATM networks globally.
Crypto ATM distribution by continents and countries.
Source: Coin ATM Radar
The top 10 operators run 28691 crypto ATMs, about 74% of the total number of ATMs. Bitcoin Depot, which operates 8512 (21.9%) machines or the maximum number of ATMs, told Cointelegraph that it “posts scam warnings” on its kiosks and “has screen prompts that warn customers of scam potentials.”
Crackdown rise across jurisdictions
On Aug. 20, Germany’s Federal Financial Supervisory Authority initiated a crackdown on crypto ATMs, seizing 13 machines from 35 locations. German officials also warned that crypto ATMs could become hubs for criminal activity if operators do not enforce proper Know Your Customer controls for transactions exceeding 10,000 euros.
Crypto ATMs are also banned in Singapore. The move is part of a broader effort by the Monetary Authority of Singapore to regulate advertising cryptocurrency to the public.
Magazine: Crypto-Sec: $11M Bittensor phish, UwU Lend and Curve fake news, $22M Lykke hack
This article first appeared at Cointelegraph.com News
