FinCEN Alerts Financial Institutions to Crypto ATM Fraud Tied to Crime Rings and Elder Fraud

A US Treasury bureau is urging financial institutions to monitor for criminals exploiting cryptocurrency ATMs to launder illicit drug proceeds, target elderly victims, and carry out other fraudulent schemes.

The Financial Crimes Enforcement Network (FinCEN), which combats money laundering and terrorist financing, issued an advisory on Monday calling on banks and other financial entities to flag and report suspicious transactions.

“Criminals continue to adapt, leveraging emerging technologies like cryptocurrency kiosks to defraud victims,” FinCEN Director Andrea Gacki said in a statement. “The US is dedicated to protecting the digital asset ecosystem for legitimate use, and financial institutions play a vital role in that mission.”

FinCEN referenced Drug Enforcement Administration (DEA) reports indicating that cartels, including Cartel Jalisco Nueva Generación, are increasingly using crypto ATMs. The bureau also cautioned that some ATM operators may be failing to comply with customer verification requirements, enabling illicit activity.