CFTC Warns of Fraud Risks Linked to Crypto ATMs

The US Commodity Futures Trading Commission warned about fraud risks tied to cryptocurrency ATMs, citing the difficulty of reversing transactions and the ease of concealing a counterparty’s identity.

Crypto ATMs are spreading across the US, appearing in gas stations, convenience stores and shopping malls, crypto-focused media outlet Crypto Briefing reported on August 26, citing the CFTC. The agency urged users to exercise caution.

The CFTC said transactions made through crypto ATMs are difficult to reverse once completed. It also said counterparties can be hard to identify, leaving the machines vulnerable to fraud.

Data from the Federal Bureau of Investigation shows losses from scams involving crypto ATMs nearly doubled in the span of a year.