Niagara Regional Police to issue fraud warnings on crypto ATMs

Niagara Regional Police are working with major cryptocurrency ATM operators in Ontario to launch a public awareness campaign to combat fraud.

On January 21, the Niagara Regional Police Service, based in Ontario, Canada, announcement it partners with cryptocurrency ATM companies Bitcoin DepositBitcoin Well, Bitcoin4U, HODL, Instacoin and LocalCoin to issue warnings on ATMs, particularly regarding the irreversible nature of crypto transactions.

These warnings will alert users to 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 an increase in crypto-ATM crimes in the Niagara region as a driving factor behind the campaign. Notably, in 2024 alone, there have been over 60 reported incidents that have caused victims to collectively lose over $1.3 million due to fraudulent activity involving crypto ATMs.

“These ATMs serve legitimate purposes for people looking to purchase/transfer cryptocurrency; however, those unfamiliar with how they work should exercise extreme caution and avoid using them in any transaction that appears suspicious or involves unsolicited payment requests,” the statement said.

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

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

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

Crypto ATMs under regulatory crosshairs

According to data from Coin ATM Radar, there were 1,561 Bitcoin ATMs in Ontario as of January 22. Across the world, the total number of Bitcoin ATMs jumped by 6% in 2024 despite repeated warnings from authorities in several 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 The elderly are suggested to be most at risk, with Bitcoin ATM losses exceeding $65 million in the first half of 2024.

Last month, the Australian Transaction Reporting and Analysis Center mandated that crypto ATM operators in the country must comply with anti-money laundering obligations and secure records, warning that non-compliance could result in enforcement action and sanctions.

Elsewhere, in the United Kingdom, the Financial Conduct Authority declared As of September, no crypto ATMs operate legally in the country.