Now offers cryptocurrency, ATMs aimed at cryptocurrency fraud

ATMs have been a part of banking and financial services for more than half a century. But until recently, they mostly served as a tool for receiving cash, depositing checks or reviewing balances.

However, the addition of cryptocurrency to ATMs in recent years has added a new wrinkle to the basic card skimmers and over-the-shoulder, old-fashioned PIN-snapping. More and more cybercriminals are looking at the reliable, traditional ATM as a major focus for cryptocurrency fraud. In fact, the ATM Industry Association (ATMIA) announced last month that it was launching a national program to educate “law enforcement and consumers … addressing cryptocurrency fraud schemes.”

‘Although the vast majority [about 99%] of cryptocurrency transactions represent legitimate activity, some consumers fall victim to smart scammers “, according to ATMIA’s publication. “People who would never hand over a blank check or their credit card to a stranger are tricked into completing a cryptocurrency transaction for one. And these tend to be the kind of romance, investment and commodity scams that have been around for decades.”

In fact, ATMIA created its own “ATM Cryptocurrency Deployers Advocacy Group” in 2021, when executives noted that “membership of crypto-ATM developers really increased last year,” according to David N. Tente, CEO of the United States, Canada and the United States. for ATMIA.

Cryptocurrency is new in ATMs, but old scams are still reliable for scammers

While the incidence of cryptocurrency fraud per teller machine has not necessarily increased that much in recent months, “the problem has grown as the number of cryptocurrencies and kiosks has grown rapidly in the last couple of years,” said Tente.

According to ATMIA, there are more than 30,000 ATMs and kiosks worldwide that offer cryptocurrency services – mainly in the United States. Although less than 10% of the 500,000 traditional ATMs in operation today, the increased interest in and use of cryptocurrencies (even in light of the recent cryptocurrency) means that many of these conventional ATMs can be converted to accept cryptocurrency, according to Tente.

As is common with financial fraud, many of the scams committed on crypto-ATMs, issuers and users are similar to the same “scams that have been around for decades,” Tente added. “These schemes always have an urgent element. Payment must be made now. “

Tente pointed out that for many cyber thieves, “cryptocurrency is a more attractive payment method than an electronic check or a check,” due to the lack of audit trail and anonymity. “Criminals simply change the way victims pay, using the same scheme,” Tente said, adding that fraudsters will often target older, isolated or naive crypto users, believing they are least likely to push back.

“People must be suspicious of everyone they do not know who asks for money for whatever reason,” said Tente. “If there is any request for money for them, [they should] get a new opinion from someone they know and trust. ”

In its June release, ATMIA outlined six types of fraud schemes that they have seen emerge at ATMs in recent months, as cryptocurrency-activated ATMs and related fraud have increased, as well as law enforcement recommendations on how to deal with these suspected schemes.

“The coexistence of cash, crypto, digital currencies and ATMs is already established,” ATMIA chief Mike Lee said in the June release. “But as an industry body, we are required to self-regulate at all times and do everything we can to ensure that transactions are safe and legitimate, and cooperate with law enforcement to tackle all types of criminal attacks.”

Even without the influx of cryptocurrencies, more than a third of the $ 28 billion lost in global credit card fraud in 2020 was lost by ATM buyers and retailers [more than $10 billion].

“Buyers and payment processing companies have long relied on rule-based technology to prevent trade fraud,” said Amyn Dhala, product manager at Brighterion, a Mastercard company focusing on technology and security. “The challenge? Older, rule-based systems do not adapt as quickly as criminals.”