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12th November 2021


Crime officials report that criminals are using bitcoin ATMs across the country to launder money, transact drugs, and commit a variety of fraud using convenient and anonymous transactions. Located mostly at convenience stores and operated by private companies, the machines make it easy for customers to purchase bitcoin and other cryptocurrencies with cash and have the funds sent to their crypto wallets.


The FBI reports that victims are increasingly being prompted to use physical cryptocurrency ATMs and digital QR codes to complete payment transactions, the FBI stated in a public service announcement. During the transaction, the scammers provide the victim with a QR code associated with their cryptocurrency wallet. The scammers instruct the victim to use a physical cryptocurrency ATM to insert their money, buy cryptocurrency, and then withdraw it from the ATM. 


The commission's report said that machines allow customers to purchase cryptocurrencies up to $900 while providing only their cellphone numbers. That alarming said the FBI agent. Money launderers, drug traffickers, and people who try to convince unwitting victims to send money to a crypto wallet have all been known to use these machines.


Ben Weiss, CEO of CoinFlip, said the company tiers customers based on the amount of crypto they buy. An AML/KYC approach has to be proportionate to the risks, and for lower transactions, we don't want to disenfranchise anyone. The automated AML approach will help bitcoins and other cryptocurrencies to be regulated more and deliver a better approach in catching the bad actors in action. 


Source: CNBC

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