Brenda Smith found herself in unfamiliar territory when she unknowingly fell victim to a cyber scam, depositing over $12,000 into two cryptocurrency ATMs following instructions from scammers last year.
The 76-year-old retiree from Calgary, who had recently suffered a stroke affecting her cognitive abilities, shared her experience of being deceived, stating, “They’re so convincing, and unfortunately I was vulnerable.”
Smith, guided by the scammer, deposited the cash into the machines without questioning, mistaking the crypto ATMs for traditional banking machines. These ATMs allow customers to convert cash into cryptocurrencies like Bitcoin and transfer them to virtual wallets globally.
Unaware of the fate of her money, Smith expressed the emotional toll, stating, “It was devastating, even though it was only $12,000. When you’re a senior on pensions, that’s a lot of money.”
The installation of the first-ever crypto ATM in a Vancouver coffee shop in 2013 marked the beginning of a growing trend. Today, with approximately 3,600 crypto ATMs in Canada and over 39,000 worldwide, authorities are increasingly concerned about their misuse.
WATCH | CBC investigation uncovers why crypto ATMs are so popular for fraudsters:
A comprehensive investigation by CBC News revealed that legally operating crypto ATMs are exploited by criminal networks for fraud and money laundering. FINTRAC, Canada’s financial intelligence agency, highlighted the significant role of Bitcoin Automated Teller Machines (BATMs) in facilitating fraud and money laundering activities.
Despite the risks associated with crypto ATMs, regulatory oversight is limited, with FINTRAC not actively monitoring the operations of these machines. While crypto ATM operators are required to adhere to anti-money laundering laws, gaps in regulations allow for potential exploitation.
Statistics from the Canadian Anti-Fraud Centre reveal a concerning trend, with victims reporting losses amounting to
