Why Criminals Use Crypto ATMs

TrainMyParent.com
Sep 9
2 min read

A suspicious character at a Bitcoin ATM machine.

Crypto ATMs are popping up everywhere these days, in gas stations, convenience stores, airports, and other places of commerce. For most people, they’re just a quick way to buy or sell digital currency like Bitcoin. But for criminals, these machines have become a sneaky alternative to cash. Here’s why.

They offer a layer of anonymity: Traditional banks ask questions, and must report transactions worth $10,000 and over to the IRS. Crypto ATMs often don’t care anything about the person or the amount. Some machines still allow small transactions without full ID checks, making them attractive to anyone who doesn’t want their name tied to the money they’re moving. A criminal can feed in cash, get crypto on the spot, and send it anywhere in seconds.
They make money laundering faster: Turning dirty money into clean-looking funds used to take time and effort. With a crypto ATM, it’s quick and simple: convert the cash to Bitcoin, move it through a few wallets, and suddenly it’s harder to trace where it came from.
They are easy to use: To convert the funds, there is no need for the criminal to have a bank account or an account in an online exchange. Many crypto ATMs only require a phone number for identification and to send a one-time code, but criminals often use burner phones that are not tied to a particular person. And, the criminals use a QR code on their phone to identify the wallet or wallets that should receive the funds, so there is no need to remember lengthy account numbers. That makes them an easy entry point for anyone, especially those who would rather not deal with official financial systems.
Regulation hasn’t fully caught up: While the rules around crypto are tightening, many ATMs still fly under the radar. Some are run by small operators who don’t report large transactions or suspicious activity, leaving a loophole that bad actors are quick to exploit.
The money moves globally in seconds: Once the cash is turned into cryptocurrency, it can be sent across borders instantly. That makes it a handy tool for organized crime networks that need to move money fast without triggering alerts from banks or regulators. Then, once the funds are no longer in the USA, there is likely no recourse to recoup them.

A woman entering information into an ATM machine — Convert cash into crypto almost anywhere!

Crypto ATMs aren’t inherently bad. They are useful tools for regular people who want quick access to digital currency and to convert between cash and different crypto currencies. But their combination of speed, simplicity, and limited oversight has made them very appealing to criminals and scam artists too. As governments and regulators work to tighten controls, for the time being crypto ATMs will likely remain a battleground between convenience and crime.

Learn how you can protect yourself or your family by enrolling in the Complete Internet Security Basics and Phishing Awareness Course for Parents on TrainMyParent.com

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