A November 4 order by the California Department of Financial Protection and Innovation requires Coinflip to compensate local fraud victims by more than $4.8 million and pay over $350,000 in excess fees. The case involves about 500 of its machines in California, most located in supermarkets and gas stations.
The investigation dates back to 2021: identity checks were inadequate, and suspicious transactions were not properly identified, prevented, reported, or handled. Some transactions also exceeded the $1,000 daily limit per customer, and written disclosures before purchases and information on receipts were incomplete. Scammers impersonated trusted institutions, claiming there was a problem with victims’ accounts or computers, then told them to withdraw cash, scan a QR code to buy cryptocurrency, and send it to the scammers’ own wallets. Older people were especially likely to be targeted.
The key point in this case is not the amount, but that regulators treated ATMs as a cash gateway in the fraud chain: in addition to requiring compensation, they also ordered the company to stop its violations. If verification and limits at individual machines exist only on paper, the next penalty will be no smaller.
#加密ATM #监管执法 #Scam
The investigation dates back to 2021: identity checks were inadequate, and suspicious transactions were not properly identified, prevented, reported, or handled. Some transactions also exceeded the $1,000 daily limit per customer, and written disclosures before purchases and information on receipts were incomplete. Scammers impersonated trusted institutions, claiming there was a problem with victims’ accounts or computers, then told them to withdraw cash, scan a QR code to buy cryptocurrency, and send it to the scammers’ own wallets. Older people were especially likely to be targeted.
The key point in this case is not the amount, but that regulators treated ATMs as a cash gateway in the fraud chain: in addition to requiring compensation, they also ordered the company to stop its violations. If verification and limits at individual machines exist only on paper, the next penalty will be no smaller.
#加密ATM #监管执法 #Scam