FinCEN Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity (FIN-2025-NTC1)

FIN-2025-NTC1 August 4, 2025
FinCEN Notice on the Use of Convertible Virtual Currency Kiosks for Scam Payments and Other Illicit Activity The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) is issuing this Notice to financial institutions1 urging them to be vigilant in identifying and reporting suspicious activity involving convertible virtual currency (CVC) kiosks. CVC kiosks—also called cryptocurrency (crypto) Automated Teller Machines (ATMs)—are ATM-like devices or electronic terminals that allow customers to exchange real (or fiat) currency for virtual currency and vice versa.2 While CVC kiosks can be a simple and convenient way for consumers to access CVC, scammers and other illicit actors can also exploit their simplicity and convenience. According to the Federal Bureau of Investigation’s (FBI) Internet Crime Complaint Center (IC3), criminals engaged in fraud schemes often direct victims to use a CVC kiosk to send payments under false pretenses. In 2024, the FBI’s IC3 received more than 10,956 complaints reporting the use of CVC kiosks, with reported victim losses of approximately $246.7 million.3 This represents a 99 percent increase in the number of complaints and a 31 percent increase in reported victim losses from 2023.4 The Federal Trade Commission (FTC) likewise identified, based on an analysis of consumer reports, that fraud losses through CVC kiosks have skyrocketed.5 FinCEN, through analysis of Bank Secrecy Act (BSA) information, has observed that CVC kiosks have also been used to launder suspected drug proceeds. The Drug Enforcement Administration (DEA) reports that transnational criminal organizations (TCOs) such as Cartel Jalisco Nueva Generación are increasingly adopting CVC because it enables rapid international funds transfers.6 In areas that face a significant drug-related threat and that have a significant

1. See 31 U.S.C. § 5312(a)(2); 31 CFR § 1010.100(t).
2. FinCEN previously discussed illicit finance risks related to CVC kiosks in a 2019 advisory. See FinCEN, FIN￾2019-A003, “Advisory on Illicit Activity Involving Convertible Virtual Currency” (May 9, 2019), at p. 7. This Notice
   supplements the information provided in that 2019 advisory.
3. FBI, IC3, “Internet Crime Report 2024” (“2024 IC3 Report”), at p. 36.
4. Id.
5. See FTC, “Bitcoin ATMs: A payment portal for scammers” (“FTC Report”) (Sept. 3, 2024).
6. See DEA, “2025 National Drug Threat Assessment” (May 2025), at pp. 10, 64.
   Suspicious Activity Report
   (SAR) Filing Request
   FinCEN requests that financial institutions reference this Notice in SAR field 2 (Filing Institution Note to FinCEN) and the narrative by including the key term “FIN-2025-CVCKIOSK”.