Alison Jimenez, president of Dynamic Securities Analytics, said that while ATM-enabled scams require action, most cryptocurrency fraud losses can be traced to exchanges. She referenced FBI Internet Crime Complaint Center (IC3) data and broader fraud trends beyond digital assets in a statement made on LinkedIn.
"Per 2024 FBI IC3 data, for every $1,000 in crypto ATM fraud loss there is $37,000 in crypto fraud loss largely through centralized exchanges," said Jimenez, according to LinkedIn. "Bitcoin ATMs being used to defraud Americans is a serious problem that should be addressed through a variety of means legislation, regulation, consumer education, etc. But the narrow emphasis on bitcoin ATMs misses the bigger picture - that the vast majority of crypto scam losses occur through crypto exchange. Crypto ATM fraud losses are a drop in the bucket compared to losses through crypto exchanges."
The FBI's IC3 has categorized "cryptocurrency" separately from specific scam types and, in 2024, introduced a focused view on "cryptocurrency ATMs/kiosks." Although distressing videos of in-store scams are widely shared, IC3 reported much larger losses linked to crypto across investment, tech-support, and impersonation schemes. Many of these schemes direct victims to centralized exchanges. Federal guidance emphasizes vigilance and notes that scams exploit both digital-asset platforms and traditional payment systems. This supports Jimenez’s call for balanced responses that address ATM abuse without losing sight of broader fraud trends.
IC3 reported 149,686 complaints referencing cryptocurrency in 2024, with reported losses amounting to $9,322,335,911. In contrast, the subset specifically involving "cryptocurrency ATMs/kiosks" accounted for 10,956 complaints and $246,700,000 in losses. This suggests a roughly 37.8-to-1 gap between overall crypto-linked losses and those tied to ATMs/kiosks—approximately $37,800 in overall crypto-linked losses for every $1,000 tied to ATMs/kiosks—highlighting the scale difference central to Jimenez’s argument. The report also noted that individuals aged 60 and older were the largest loss cohort.
According to the Federal Trade Commission (FTC) in 2024, consumers reported more than $12.5 billion in losses across all fraud categories—a 25% increase year-over-year. Investment scams led with $5.7 billion in reported losses. Bank transfers remained a major conduit for significant harm within traditional finance as well. IC3's total reported losses for 2024 reached $16.6 billion, underscoring the scale of scams across channels and reinforcing the need for policy responses addressing both legacy and digital systems.
The FTC highlighted that while kiosks are exploited by scammers, they can serve as lawful cash-to-crypto on-ramps for adults without easy access to bank accounts or online exchanges when combined with compliance and education efforts. Federal notices acknowledge kiosks' legitimate consumer use while urging enhanced monitoring and red-flag awareness rather than blanket bans. The FTC also noted some people use Bitcoin ATMs "to buy or send cryptocurrency," advising safeguards against fraud.
Jimenez is the president of Dynamic Securities Analytics Inc., a Florida-based consultancy specializing in anti-money laundering (AML) compliance, financial crime analysis, and expert testimony. With two decades of experience in securities litigation analytics and AML audits among other areas, she has testified in FINRA arbitrations and federal proceedings while publishing research on SAR trends and fraud typologies.
