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The Financial Crimes Enforcement Network issued a notice earlier this month urging financial institutions to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency kiosks, also known as crypto ATMs.
According to the notice, the FBI’s Internet Crime Complaint Center received more than 10,956 complaints involving CVC kiosks in 2024, with reported victim losses of approximately $246.7 million. The figures represent a 99% increase in the number of complaints and a 31% increase in reported victim losses from the previous year.
This notice describes illicit finance typologies associated with CVC kiosks, provides red flag indicators to assist with identifying and reporting related suspicious activity, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act.
Examples of red flags include cash deposits just beneath the currency transaction report or CVC kiosk daily limit by either using multiple machines or multiple accounts, and multiple customer accounts or transactions linked to the same phone number or CVC wallet address