Americans are losing millions to scammers at crypto ATMs
16 hours ago
- #consumer-protection
- #crypto-scams
- #financial-fraud
- Crypto ATMs are being used as tools in scams, with victims losing significant amounts of money.
- Scammers trick victims into depositing cash into crypto ATMs by posing as authorities or tech support.
- Crypto ATM companies charge high markups (20-30%) on transactions, including fraudulent ones.
- Law enforcement struggles to stop scams due to the rapid transfer of funds to offshore accounts.
- Crypto ATM companies have lobbied to weaken regulations aimed at protecting consumers.
- Victims often receive no refunds, and companies sometimes fight to keep seized scam money.
- Scams involving crypto ATMs have surged, with losses doubling in recent years.
- Some states have passed laws to limit transactions, but industry lobbying has watered down protections.
- Crypto ATM companies argue fraud is a small part of their business, but evidence suggests otherwise.
- Lawmakers and law enforcement call for stricter regulations to protect vulnerable consumers.