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Niagara Regional Police to issue fraud warnings on crypto ATMs

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Niagara Regional Police to issue fraud warnings on crypto ATMs

Niagara Regional Police is collaborating with leading cryptocurrency ATM operators in Ontario to launch a public awareness campaign aimed at combating fraud.

On Jan. 21, the Niagara Regional Police Service, based in Ontario, Canada, announced it is partnering with cryptocurrency ATM companies Bitcoin Depot, Bitcoin Well, Bitcoin4U, HODL, Instacoin, and LocalCoin to issue warnings on ATM machines, particularly regarding the irreversible nature of crypto transactions.

These warnings will alert users about potential scams, urging them to exercise caution and avoid making transactions involving unsolicited payment requests, such as fake government debts, utility bills, or other fraudulent schemes.

Authorities cited a surge in crypto ATM-related crimes in the Niagara Region as the driving factor for the campaign. Notably, in 2024 alone, over 60 reported incidents resulted in victims collectively losing more than $1.3 million to fraudulent activities involving crypto ATMs.

“These ATMs serve legitimate purposes for individuals looking to purchase/transfer cryptocurrency; however, those unfamiliar with their operation should exercise extreme caution and avoid their use in any transaction that seems suspicious or involves unsolicited payment requests,” the announcement said.

NRPS officials advised against making payments via cryptocurrency ATMs without first verifying the legitimacy of the request.

They urged locals to contact the requesting party through legitimate communication channels, such as official websites or previously known contact details, before proceeding with any transactions, warning that such transactions are “irreversible.”

“Once the funds are sent, they cannot be recovered, making these schemes particularly devastating for victims.”

You might also like: CoinFlip deploys Crypto ATMs in Yesway and Allsup’s stores across the US

Crypto ATMs under regulatory crosshairs

According to data from Coin ATM Radar, there were 1561 Bitcoin ATMs in Ontario as of Jan. 22. Across the globe, the total number of Bitcoin ATMs surged 6% in 2024 despite repeated warnings from authorities across multiple jurisdictions.

Agencies like the Federal Trade Commission and the FBI have issued multiple fraud alerts, while unregistered operators have faced regulatory crackdowns. Recent FTC data suggested older adults are at the most risk, with losses linked to Bitcoin ATMs surpassing $65 million in the first half of 2024.

Last month, the Australian Transaction Reports and Analysis Centre mandated that crypto ATM operators in the country must adhere to anti-money laundering obligations and secure registrations, warning that non-compliance could result in enforcement actions and penalties.

Elsewhere, in the UK, the Financial Conduct Authority declared in September that no crypto ATMs are legally operating in the country.

Read more: FCA charges man for operating crypto ATMs that handled $3.4m

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