CFTC Issues Emergency Warning on Crypto ATMs Amid $388 Million in Losses
The US Commodity Futures Trading Commission (CFTC) has issued an emergency warning against crypto ATM scams, citing a surge in losses exceeding $388 million over the past year. The agency's directive, 'Pause Before You Pay,' advises Americans to treat any instructions from someone claiming to represent a government agency or bank to use a public crypto terminal as 'Probably a Scam.'
The CFTC's warning comes after a prolonged infrastructure crisis this summer and FBI data showing that American losses from such schemes surged 58% over the past year. The regulator emphasizes that no legitimate government agency, bank, or major corporation will ever demand money be sent through a crypto ATM or via gift cards.
Crypto ATMs have become an attractive tool for scammers due to their one-way transaction system, allowing funds to be transferred anonymously. Scammers often pose as employees of the Internal Revenue Service (IRS), banks, or technical support departments of major technology companies, using psychological pressure and creating artificial urgency to convince victims to withdraw cash.