The financial network of financial crimes of the American Treasury (Fincen) has published an opinion urging financial institutions to monitor suspicious activity linked to cryptographic kiosks.
These convertible virtual currency kiosks (CVC), which allow users to access and transform into cryptocurrency, offer consumers a simple way to buy crypto, said the money laundering watchdog. However, Fincen said they are exploited by criminals to engage in fraud, cybercrime and drug trafficking.
The agency highlighted an increasing number of scams involving payments made via these machines, including false technological support, identity theft of customer service and banks related to banks, some of which disproportionately affect the elderly.
“Criminals are relentless in their efforts to steal money from the victims, and they have learned to exploit innovative technologies such as CVC kiosks,” said Fincen, Andrea Gacki, in a statement.
The opinion stresses that the risks are exacerbated by institutions which do not comply with their obligations under the Bank Secrecy Act.
Fincen has followed years illicit uses involving crypto. Last year, he published a report indicating that Bitcoin became a popular means of payment linked to the smuggling and exploitation of people. He also analyzed cryptographic transactions potentially linked to Hamas.
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