The Niagara Regional Police Service (NRPS), based in Ontario, Canada, is taking proactive steps towards combatting fraud associated with cryptocurrency ATMs. On January 21, they announced a unique partnership with six leading cryptocurrency ATM operators, including Bitcoin Depot, Bitcoin Well, Bitcoin4U, HODL, Instacoin, and LocalCoin, to launch a public awareness campaign.
The crux of this campaign is issuing warnings on ATM machines about the irreversible nature of cryptocurrency transactions and alerting users to potential scams. The authorities are urging caution around transactions involving unsolicited payment requests, such as those purporting to be outstanding government debts, utility bills, or other fraudulent schemes.
This public awareness campaign comes in response to a worrying increase in crypto ATM-related crimes in the Niagara Region. In 2024 alone, over 60 reported incidents led to victims collectively losing more than $1.3 million to fraudulent activities involving these ATMs.
In their announcement, the NRPS noted that while these ATMs do serve legitimate purposes for those individuals looking to purchase or transfer cryptocurrency, those unfamiliar with their operation should approach them with caution. They specifically discouraged their use in transactions that seem suspicious or involve unsolicited payment requests.
The NRPS further advised against making payments via cryptocurrency ATMs without first verifying the legitimacy of the request. They urged locals to make contact with the requesting party through known, legitimate communication channels, such as official websites or previously known contact details, before proceeding with any transactions. They emphasized the irreversible nature of these transactions, stating, “Once the funds are sent, they cannot be recovered, making these schemes particularly devastating for victims.”
Cryptocurrency ATMs have seen an international surge, with the total number of Bitcoin ATMs increasing by 6% in 2024, despite repeated warnings from authorities across multiple jurisdictions. As of January 22, there were 1561 Bitcoin ATMs in Ontario alone, according to data from Coin ATM Radar.
International regulatory agencies, including the Federal Trade Commission and the FBI, have issued multiple fraud alerts, and unregistered operators have faced regulatory crackdowns. Last month, Australia’s Transaction Reports and Analysis Centre mandated that crypto ATM operators must adhere to anti-money laundering obligations and secure registrations, warning of penalties for non-compliance.
Meanwhile, in the UK, the Financial Conduct Authority declared in September that no crypto ATMs are legally operating in the country. As crypto ATMs continue to proliferate, regulatory efforts like those in Niagara Region are becoming increasingly important to protect consumers from fraud.
