Dynamic Securities Analytics president: Bitcoin kiosks fraud ‘a drop in the bucket compared to losses through crypto exchanges'

In its 2025 notice, FinCEN reported cautions about scam exploitation but also said that Convertible Virtual Currency (CVC) kiosks "can be a simple and convenient way for consumers to access CVC." For cash-reliant or underbanked users, kiosks offer a face-to-face, cash-to-digital on-ramp without requiring a bank account or exchange account. The notice urges financial institutions to monitor red flags, strengthen compliance, and file Suspicious Activity Reports (SARs) when warranted—an approach that preserves lawful access while targeting illicit abuse.

According to IC3 data, $9.32 billion in 2024 losses were attributed to cryptocurrency across various crime types, with 149,686 complaints filed. Within that total, reports specifically involving "cryptocurrency ATMs/kiosks" amounted to 10,956 complaints and $246.7 million in losses. This implies roughly a 38:1 gap between overall crypto-linked losses and those tied to kiosks—about $37,788 lost overall for every $1,000 via kiosks—underscoring Jimenez’s quantitative point. Older Americans reported the largest crypto losses by age cohort—a trend consistent with tech-support and government-impersonation scams directing victims to either exchanges or kiosks.

The Federal Trade Commission's 2024 data show consumers reported more than $12.5 billion in losses due to fraud across all categories—a 25% increase year over year. Investment scams were the costliest at $5.7 billion, with bank transfers remaining a leading payment method for losses. These figures reflect significant harm occurring within traditional finance channels and reinforce Jimenez’s point that focusing solely on Bitcoin kiosks risks obscuring the much larger universe of scams—from impersonation to romance and investment fraud—that exploit both legacy rails and digital assets.

Alison K. Jimenez is the president of Dynamic Securities Analytics Inc., a Florida-based consultancy she founded specializing in anti-money laundering (AML) compliance, financial crime analysis, and expert testimony. With two decades of experience in securities litigation analytics, AML audits, and cryptocurrency dispute matters, she has testified in Financial Industry Regulatory Authority (FINRA) arbitrations and federal proceedings while publishing original research on SAR trends and fraud typologies. Jimenez frequently speaks at industry and law enforcement forums on AML issues related to crypto risks and data-driven compliance.