Overview

• FinCEN’s advisory reveals a 99% jump in complaints about convertible virtual currency kiosks last year and nearly $247 million in victim losses for 2024.
• Banks and credit unions are urged to file suspicious activity reports and watch for patterns like rapid repeat transactions, large cash withdrawals directed to kiosks and third-party accompaniments.
• The notice highlights that many kiosk operators skirt Bank Secrecy Act rules, operating unregistered, charging high fees and lacking anti–money laundering controls.
• Scammers are exploiting kiosks for tech support, customer service and bank-impersonation fraud schemes that disproportionately pressure older adults to convert cash into irreversible cryptocurrency.
• Following actions by the UK’s FCA and New Zealand’s call for a ban, U.S. jurisdictions such as Spokane have moved to outlaw or tighten restrictions on crypto ATMs.