Brenda Smith was unfamiliar with cryptocurrency ATMs when she fell victim to a cyber scam last year, depositing over $12,000 into two of these machines under the guidance of a fraudster. The 76-year-old retiree from Calgary had recently experienced a stroke, which she believes impacted her cognitive abilities.
Reflecting on the incident, Smith expressed, “They’re so convincing, and unfortunately I was vulnerable.” She recounted how the scammer instructed her on the deposit process, leading her to transfer the money without much thought.
Although resembling traditional bank ATMs, cryptocurrency ATMs operate differently by allowing users to convert cash into digital currency like Bitcoin, which can then be transferred to virtual wallets globally.
Following the incident, Smith remains unaware of the whereabouts of her funds, expressing the significant impact of losing $12,000 as a senior living on pensions.
The installation of the world’s first cryptocurrency ATM in a Vancouver coffee shop in 2013 marked the beginning of a trend that has since seen a proliferation of over 3,600 cryptocurrency ATMs in Canada and more than 39,000 globally. Authorities have raised concerns about the potential misuse of these machines.
An in-depth investigation by CBC News revealed that cryptocurrency ATMs have become a primary tool for fraudsters to exploit victims across Canada. The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) highlighted the growing trend of criminal groups using cryptocurrency ATMs for fraudulent activities and money laundering.
According to a report obtained by CBC News, FINTRAC predicts that cryptocurrency ATMs will continue to be a preferred method for perpetrating fraud and money laundering, with organized crime networks targeting Canadian victims through these machines.
Lack of Oversight Despite Legal Operation
Despite these alarming findings, FINTRAC does not monitor the companies operating cryptocurrency ATMs, the number of machines in operation, or their locations in Canada. These operators fall under the classification of “money services businesses,” similar to foreign exchange dealers and money-transfer services.
Cryptocurrency ATM operators are required to comply with anti-money laundering laws, including reporting large cash transactions and suspicious activities. However, there are no regulations governing transaction fees or limits on customer transactions.
Underreported Fraud Statistics
Law enforcement agencies such as the RCMP and Toronto police do not track the extent of fraud involving cryptocurrency ATMs. The Canadian Anti-Fraud Centre (CAFC) reported victims losing $14.2 million to cryptocurrency ATM scams in 2024, with losses expected to surpass that amount in 2025.
However, CAFC estimates that only a small percentage of fraud incidents are reported, indicating that the actual losses could be significantly higher. The lack of comprehensive reporting poses challenges for law enforcement in tackling this issue.
Rising Concern Over Crypto ATM Fraud
Toronto police detective David Coffey emphasized the daily influx of fraud reports linked to cryptocurrency ATMs and the difficulties in investigating these cases due to the global nature of transactions. He highlighted the increasing use of cryptocurrency ATMs in various
