Det. Sgt. Ray Aceti has intervened twice to prevent scam victims from falling prey to fraudsters through crypto ATMs. The first incident, occurring five years ago, involved an immigrant risking his life savings under the influence of a scammer. Aceti’s timely intervention halted the victim from losing his money. The second instance took place in January, following Aceti’s awareness campaign on crypto ATM scams, where he and his team placed fraud warning posters beside 85 machines. The Niagara Regional Police have received reports totaling over $3.1 million in fraud losses through crypto ATMs since 2020, with nearly $1.4 million reported last year.
Aceti’s proactive measures stand out as one of the limited actions taken by Canadian authorities to combat this issue. Other law enforcement agencies, such as the RCMP and Ontario Provincial Police (OPP), have also posted warning notices near crypto ATMs. However, despite the significant transaction volume exceeding $1 billion nationwide this year, there are no specific regulations in place for this industry. FINTRAC, Canada’s financial intelligence agency, has identified crypto ATMs as the primary tool used by fraudsters to swindle money from victims, contrasting with several peer countries enacting targeted regulations.
Det. Aceti and other stakeholders emphasized the urgency for stricter regulations to protect victims from financial crimes facilitated by crypto ATMs. While the U.K. and Australia have taken robust measures such as licensing restrictions and daily transaction limits, the absence of such initiatives in Canada raises concerns. The Finance Minister, François-Philippe Champagne, acknowledged the need for preventive actions against financial crimes but did not elaborate on specific strategies. Despite pressure for industry-specific regulations, crypto ATM operators in Canada have varying opinions on the extent of regulatory measures needed to safeguard consumers.
In the absence of imminent regulatory changes, public awareness campaigns and vigilance play a crucial role in combating crypto ATM scams. Retailers, like Ashok Malaviya, have been advised to monitor customers using crypto ATMs and intervene if suspicious activities are observed. The collective efforts of law enforcement, government agencies, and the public are essential in addressing the growing threat posed by fraudulent activities through crypto ATMs.