The U.S. Treasury has raised a red flag about crypto ATMs, saying scammers are increasingly exploiting them. A report submitted to Congress under the GENIUS Act shows that these kiosks are being used in fraud schemes, causing losses of nearly $247 million in 2024.
Crypto ATMs, which let people turn cash into cryptocurrency, have become an easy tool for criminals. Scammers often pressure victims to deposit cash into the machines and send crypto to wallets controlled by fraudsters, commonly as part of impersonation or fake investment schemes. The FBI got over 10,900 complaints about crypto ATM scams last year, and older adults are often the most targeted.
The Treasury also warned that other digital tools—like mixers, decentralized finance (DeFi) platforms, and cross-chain bridges—can be misused to hide stolen crypto.
But it’s not all bad news. The report highlights new tech like AI, blockchain analytics, digital ID systems, and APIs as ways to help banks and financial institutions detect suspicious activity and strengthen anti-money-laundering controls.
The agency reviewed feedback from over 220 industry participants and stressed that compliance should remain technology-neutral, letting companies choose the tools that fit their risk profiles.
As lawmakers debate the GENIUS Act, these findings underscore the need to balance crypto innovation with stronger safeguards against fraud and illicit finance.
