CBC | They look like traditional ATMs, but crypto ATMs are very different. Instead of dispensing cash from your bank account, crypto ATMs are used to deposit cash, convert it to cryptocurrency, and send it to a virtual wallet anywhere in the world.

That’s part of the problem: Immediate deposits to virtual wallets. CBC News investigated the crypto ATM industry in Canada and learned that the machines have become the main vehicle that scammers use to get money from fraud victims in Canada.

“The low barrier of using them and getting access to crypto assets is exactly what facilitates crime,” according to Andreas Park, a finance professor at the University of Toronto and co-founder of its blockchain research lab. Customers don’t need a bank account to use a crypto ATM.

Crypto ATMs are legal in Canada. At 3,600, Canada has the second-most crypto ATMs in the world — and most crypto ATMs per capita in the world, according to TRM Labs.

Authorities have growing concerns about how the machines are being used and by whom. And despite FINTRAC’s findings, the agency doesn’t monitor which companies operate the ATMs, how many they have, or where they’re located. Crypto ATM operators are classed as a “money services business,” along with foreign exchange dealers, regular ATMs, and money-transfer services like Western Union.

“The low barrier of using them and getting access to crypto assets is exactly what facilitates crime.” — Andreas Park, University of Toronto

Brenda, a 76-year-old Calgary retiree, didn’t know what a cryptocurrency ATM was before she was directed to deposit more than $12,000 in cash into two of the machines.

“They’re so convincing, and unfortunately, I was vulnerable,” Smith said. “He did walk me through what to do, and so of course, I just deposited the money and never really gave it a second thought.”

The only national law enforcement group tracking fraud transactions tied to crypto ATMs appears to be the Canadian Anti-Fraud Centre (CAFC). According to the CAFC, fraud victims reported theft of $14.2 million in scams through crypto ATMs in 2024. Reported losses had already exceeded $4.2 million in the first three months of 2025.

“The low barrier of using them and getting access to crypto assets is exactly what facilitates crime.” Andreas Park, University of Toronto

But CAFC also estimates that only 5% to 10% of fraud incidents are ever reported to it. And the numbers don’t regularly include police reports of fraud incidents, Toronto Police Det. David Coffey told CBC.

“They need to multiply it by 10 or 20 just to get a vague sense of the real damages,” said Coffey.