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08/05/2025

FinCEN Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity

FinCEN

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is issuing this Notice to financial institutions urging them to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency (CVC) kiosks. CVC kiosks—also called cryptocurrency (crypto) Automated Teller Machines (ATMs)—are ATM-like devices or electronic terminals that allow customers to exchange real (or fiat) currency for virtual currency and vice versa.

While CVC kiosks can be a simple and convenient way for consumers to access CVC, scammers and other illicit actors can also exploit their simplicity and convenience. According to the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3), criminals engaged in fraud schemes often direct victims to use a CVC kiosk to send payments under false pretenses. In 2024, the FBI’s IC3 received more than 10,956 complaints reporting the use of CVC kiosks, with reported victim losses of approximately $246.7 million. This represents a 99 percent increase in the number of complaints and a 31 percent increase in reported victim losses from 2023.4 The Federal Trade
Commission (FTC) likewise identified, based on an analysis of consumer reports, that fraud losses through CVC kiosks have skyrocketed.

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