An ATM scam tied to a New York City youth employment program reportedly spread on TikTok and caused millions of dollars in losses within days.

According to a New York Times report, payment cards provided to participants of NYC’s Summer Youth Employment Program were suddenly allowing users to take out more money from ATMs than they should have been able to.

The payment cards issued to thousands of young people in the program normally give users access only to that week’s earnings – at the most a few hundred dollars. But this time, the payment cards gave users the ability to withdraw tens of thousands of dollars at each ATM. In total, some $17 million was fraudulently withdrawn on the payment cards between July 11th and July 13th.

An estimated 30,000 cards were issued to 14- to 24-year-olds who were unable to receive payment by direct deposit.

The NYC Police Department’s Financial Crimes Task Force is now investigating the matter. Anonymous law enforcement officials say some of the program participants sold their cards for $1,000 apiece.

Mark Zustovich, a spokesman for the agency that oversees the program, the NYC Department of Youth and Community Development, says participants may have been pressured by criminals to abuse their payment cards.

“We are deeply disturbed by scammers preying on our participants just as they started their work assignments to support themselves and their families.”

It remans unclear at time of writing what made it possible for payment cards to allow for the fraudulent withdrawals and who will ultimately be responsible for covering the costs.

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A former Wells Fargo employee in California is reportedly facing charges over allegations he stole $947,000 from the bank’s ATM machines during a span of nearly two years.

In a new report in the San Francisco Chronicle, Tamim Ghulam Haidar, the former Wells Fargo Union City branch operations associate manager, is accused of putting less money into the bank’s ATMs than he reported and pocketing the difference for his own use.

Haidar allegedly deposited the ill-gotten gains he is accused of “knowingly and intentionally” embezzling into his own bank accounts or those he controlled and used the funds to cover losses that “he incurred while trading in the foreign currency markets,” according to legal documents filed in the U.S. District Court Northern District of California.

Haidar allegedly committed the crimes from February 2021 to October 2022.

Prosecutors accuse Haidar of sometimes using other bank employees’ credentials to deposit cash in the ATM to “conceal the fact he was inputting false and inflated dollar amounts.”

Haidar is charged with embezzlement by a bank employee and engaging in monetary transactions in property derived from specified unlawful activity. He faces up to 30 years in federal prison.

Prosecutors are also seeking to force Haidar to forfeit the money he allegedly stole.

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Australia’s financial intelligence agency AUSTRAC, has warned crypto ATM operators on missing anti-money laundering checks and helping criminals launder money.

In a statement released Monday, the AML watchdog highlighted “worrying trends” of suspicious activities and transactions.

The notice arrives months after a panel of experts from AUSTRAC formed an internal taskforce to address AML and terrorism financing issues using crypto ATMs. The taskforce comprises members from the watchdog’s regulatory, enforcement and intelligence areas.

Brendan Thomas, CEO of AUSTRAC, noted that the panel has been busy “engaging with businesses” to understand the risks and address them with compliance.

“It’s identified worrying trends and indicators of suspicious activity, including transactions that may be linked to scams or fraud.”

Australia Hosts Nearly 1,600 Crypto ATMs, Numbers Spiked Since 2019

According to AUSTRAC estimates, there are around 1,600 crypto ATMs in use around the country. “Australia has the highest number of crypto ATMs in the Asia Pacific region,” the statement read.

In 2019, Australia hosted only 23 crypto ATMs nationwide, which spiked to 60 in 2022. Over the past three years, the number of Bitcoin ATMs has “grown rapidly,” it added.

Additionally, crypto exchanges have been regularly installing ATMs, which are used by customers to deposit cash and buy Bitcoin.

“We want to ensure crypto ATM providers have robust practices to minimise the risk that their machines can be used to launder dirty money or to scam and defraud innocent people,” CEO Thomas, noted.

He further noted that AUSTRAC will take action against operators who don’t comply with the law.

AUSTRAC Works Towards Crypto Compliance Push

The AML regulator has already targeted 13 remittance and digital currency exchange providers due to a lack of compliance. Besides, the agency is stated that some have face conviction, protection or charges for serious offences.

Meanwhile, the country’s financial regulator ASIC has taken cautious steps to secure Australia’s growing crypto ecosystem. The agency has helped take down over 5,500 fraudulent investment websites, more than 1,000 phishing links, and 615 crypto scam sites since July 2023.

In a recent move, Australian police knocked down an organized crime syndicate involved in burglaries targeting crypto ATMs and Pokémon collector cards.

The post Aussie Watchdog Places Crypto ATM Providers ‘On Notice,’ Warns Over Missing AML Checks appeared first on Cryptonews.

Bitcoin miner Marathon has filed a shelf registration with the U.S. SEC for an at-the-market offering of up to $2 billion in common stock.

The offering will allow the company to issue shares periodically at prevailing market prices.

According to Marathon’s prospectus, proceeds will be allocated for general corporate purposes, including acquiring Bitcoin, purchasing mining equipment, expanding facilities, or pursuing mergers and strategic investments.

The ATM structure offers the company flexibility to raise capital opportunistically while avoiding fixed terms or pricing.

Marathon has indicated that the capital raise aligns with its long-standing strategy of increasing its Bitcoin holdings and mining capacity.

The firm, which held over 15,000 BTC and $356 million in cash equivalents at year-end, previously utilized similar offerings to fund operational growth, including expanding its Abu Dhabi joint venture and acquiring a 20% stake in the MARA mining pool operator.

By opting to raise equity rather than incur additional debt, Marathon retains balance sheet flexibility and leverages its stock price to fund expansion. However, issuing up to $2 billion in new shares could dilute existing shareholders unless offset by increased revenue or asset growth.

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Liam ‘Akiba’ Wright

Editor-in-Chief at CryptoSlate

Also known as “Akiba,” Liam Wright is a reporter, podcast producer, and Editor-in-Chief at CryptoSlate. He believes that decentralized technology has the potential to make widespread positive change.

North Dakota lawmakers have taken a decisive step toward regulating crypto ATMs, approving a bill imposing a $2,000 daily transaction limit per user.

On March 18, the state Senate passed House Bill 1447, advancing legislation designed to curb fraud and enhance oversight.

HB 1447 seeks to protect residents from rising fraud cases linked to crypto ATMs. According to Coin ATM Radar, North Dakota currently hosts around 45 Bitcoin ATMs out of approximately 29,730 machines across the United States.

With Senate approval secured, the bill will likely return to the House for further consideration before reaching the governor’s desk for final approval. If enacted, North Dakota would establish a stronger regulatory framework to address crypto ATM fraud while maintaining user accessibility.

Bill details

HB 1447 introduces stricter guidelines for crypto ATM operators, requiring them to obtain a money transmitter license before running their machines in North Dakota.

The bill requires clear and easily readable disclosures of terms and conditions in the customer’s preferred language.

It also mandates using blockchain analytics tools to detect fraudulent transactions, track suspicious wallet activity, and flag potential money laundering schemes. Regulators would be able to request proof that operators are using these tools effectively.

Crypto ATMs will also be required to display fraud warnings before processing transactions, helping users identify potential scams.

Additionally, operators must establish and maintain a written anti-fraud policy, ensuring proactive steps are taken to detect and prevent fraudulent activity.

The bill stated:

“A virtual – currency kiosk operator shall take reasonable steps to detect and prevent fraud, including establishing and maintaining a written antifraud policy.”

In addition to security measures, the legislation enforces a $2,000 daily withdrawal cap. Initially, lawmakers proposed a $1,000 limit, but the threshold was later raised to allow greater flexibility while maintaining fraud safeguards.

The bill mandates that ATM operators provide live assistance on weekdays from 8 A.M. to 10 P.M. Central Time to improve customer support. A toll-free customer service number must be prominently displayed on the machine or its interface.

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The state of Nebraska has introduced new legislation aimed at tightening regulations on cryptocurrency ATMs, a move designed to prevent fraud and enhance consumer protection. Governor Jim Pillen signed the LB609 bill into law, officially known as the ‘Controllable Electronic Record Fraud Prevention Act.’

This legislation requires crypto kiosk operators to obtain a license under the ‘Nebraska Money Transmitters Act’ and provide clear disclosures regarding service terms and fraud risks.

Strengthening Regulations for Crypto Kiosks

The new law comes in response to a growing number of scams linked to Bitcoin ATMs, with authorities noting a sharp rise in fraudulent activity in recent years.

The Federal Trade Commission (FTC) reported in September 2024 that consumer losses from digital currency ATM scams exceeded $65 million in the first half of the year. The law is expected to tighten oversight on ATM transactions, ensuring that consumers are better informed and protected from potential fraud schemes.

Meanwhile, Nebraska lawmakers and regulators seem to be positioning the state as crypto-friendly while enforcing measures to prevent misuse. Governor Pillen emphasized that Nebraska is committed to building a “secure and transparent” environment for cryptocurrency businesses. Pillen stated,

Cryptocurrency is an emerging industry, and we’ve been working hard to build Nebraska into a crypto leader. We want everyone to know that we’re open for business — and that we’re doing it the right way.

Senator Eliot Bostar, who introduced the bill in January also highlighted that digital currency ATMs must now comply with stricter licensing and disclosure requirements. The Nebraska Department of Banking will oversee the enforcement of these rules.

Department Director Kelly Lammers reiterated that while Nebraska welcomes digital currency businesses, the state will also be closely monitoring transactions to prevent misuse. Lammers noted that a dedicated team will be established to track suspicious activity, focusing on protecting consumers from fraudulent schemes.

Impact of the New Legislation on Crypto Adoption

The implementation of LB609 signals Nebraska’s intent to balance innovation with consumer safety. While regulators have imposed strict rules on crypto ATMs, they are also working to create a “structured” framework that allows legitimate businesses to thrive.

The legislation may encourage more digital currency firms to establish operations in Nebraska, given the state’s proactive approach to regulation.

Crypto ATM operators will need to adjust to the new compliance requirements, ensuring that users receive adequate warnings about potential scams before completing transactions.

The effectiveness of this law will likely depend on how well enforcement teams can identify and respond to fraudulent activities. With regulatory agencies increasing their scrutiny on digital asset transactions, Nebraska’s approach may serve as a model for other states looking to regulate crypto ATMs.

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