The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, has issued a notice urging financial institutions, particularly cryptocurrency ATM operators, to be vigilant against scams and illicit activities involving convertible virtual currency kiosks. This announcement was shared in a public notice.
"Criminals are relentless in their efforts to steal money from victims, and they’ve learned to exploit innovative technologies like CVC kiosks," said FinCEN Director Andrea Gacki. "The United States is committed to safeguarding the digital asset ecosystem for legitimate businesses and consumers, and financial institutions are a critical partner in that effort. This Notice supports Treasury’s continuing mission to counter fraud and other illicit activities."
According to FinCEN's notice, fraud reports involving crypto ATMs nearly doubled in 2024, with 10,956 complaints reported to the FBI’s Internet Crime Complaint Center and approximately $246.7 million in victim losses. The scams include tech-support schemes, government impersonation, romance scams, and investment fraud.
FinCEN reminded kiosk operators that most are regulated as money services businesses under the Bank Secrecy Act. They must register, maintain anti-money laundering programs, conduct customer due diligence, and file suspicious activity reports. Reports related to these schemes should include the key term "FIN-2025-CVCKIOSK."
CoinFlip, which operates over 5,500 cryptocurrency kiosks across 49 states and internationally, said it has implemented multiple measures to protect customers and comply with federal and state regulations.
"CoinFlip’s customer support team has prevented hundreds of transactions from moving forward due to suspicions of fraud," said CoinFlip’s Associate Director of Customer Support on the company's website. The company emphasized its active role in protecting users by training its team to ask pertinent questions and escalate risk cases.
The Chicago-based company offers a pre-registration process for transactions enforcement of purchase limits and operates a 24-hour customer support center trained to interrupt suspected scams. CoinFlip also employs blockchain analytics tools to monitor transactions and block wallets linked to illicit or sanctioned activity; suspicious activity is escalated for compliance review and possible reporting.
Additionally, CoinFlip publishes consumer safety tips on its website advising against sending cryptocurrency to strangers and cautioning customers about scanning QR codes provided by unknown parties at kiosks.
FinCEN serves as the nation’s financial intelligence unit responsible for safeguarding the financial system from illicit use while promoting national security through financial data collection and analysis. Established in 1990, FinCEN administers the Bank Secrecy Act working closely with law enforcement agencies, regulators, and the financial industry to detect money laundering, terrorism financing, and other financial crimes.
