Are Circle K Stores Facilitating Crypto ATM Scams?
The American multinational news media company CNN conducted a joint investigation with the International Consortium of Investigative Journalists into the scams surrounding Circle K. According to the inquiry, Circle K made millions of dollars by renting out space for crypto ATMs. The investigation has also collected evidence showing that the machines play a significant role in international fraud. The scam is not carried out by criminals but by a single machine at the convenience store.
International Crypto Scam Investigation
CNN and ICIJ began an investigation into the international crypto scam around the Circle K store after more than 150 consumer complaints were filed with the police. The team has reviewed the cases and spoken to 17 employees who witnessed the scam happen and tried to prevent it at work. One employee has said they saw a man attack a machine with a sledgehammer, trying to retrieve his stolen money. Employees have reported the issue with their manager, but have not seen any action taken to resolve it.
According to the report, Debbie Joy, an assistant manager of Circle K in Port Orange, Florida, said, “Circle K policy is, ‘It’s not our machine, it’s not our problem’, but I see it all too often.” She did this during a city council meeting in April after receiving an award for stopping one of the scams.
Circle K’s Staff Falling Into Trickery
Circle K hosts crypto ATMs in more than 750 of its stores. According to Bitcoin Depot, Circle K is the company’s largest corporate partner. One of the Circle K spokespersons argued that the popularity of cryptocurrency has grown widely, and crypto scams can even occur outside retail locations, long before the crypto-ATM-related frauds.
He also added that Circle K was a responsible retailer, the company works closely with partners like Bitcoin Depot to provide quality services, and ensures adherence to standards and regulations to meet customers’ needs and expectations.
Apart from consumers entering Circle K, the store’s staff have been tricked by these crypto machines. Police reported that staff have lost thousands of dollars that they took from the store’s safe and deposited into these crypto ATMs.
At a store in Indiana, managers have put up signs behind the register cautioning employees, saying, “Don’t save money in the register to drop in the Bitcoin Machine.” The company has also alerted staff through multiple emails and training about the crypto ATM scams.
Some Circle K store employees said that the store’s measures are harming their own customers.
A Circle K spokesperson said, “While we train and educate our employees to recognize common and emerging financial scams, they do not handle or oversee customer transactions at self‑service cash ATMs or Bitcoin Depot terminals available in our stores, which are owned and managed solely by third parties.”
However, many observers and consumers have argued that Circle K is prioritizing safety over safety. In an early investigation, CNN revealed how crypto ATM companies are generating profits from scams. They mark up cryptocurrency prices by 20% to 30%, or more, on higher transactions. The transactions also include illegal ones. Authorities and attorneys general have alleged that all crypto ATM transactions are scams, and companies that make these machines have failed to protect consumers.
Circle K’s partnership with Bitcoin Depot
Bitcoin Depot and Circle K announced their partnership in 2021. Bitcoin Depot aimed to host ATMs and generate extra revenue, as well as increase foot traffic. The founder of Bitcoin Depot said that the crypto ATMs installed at Circle K would allow customers to buy crypto “instantly in a familiar environment in their local neighborhoods.”
In return, Circle K received about $700 a month in rent per location. The amount could vary depending on location. However, Circle K has become the centre of crypto scams. According to reports, the FBI has received more than 12,000 scam complaints this year involving crypto-ATMs. These ATMs enable criminals to convert stolen funds into digital wallets in foreign countries, which are less likely to cooperate with U.S. laws. So far, victims have lost more than $330 million between January and November.
Final Thoughts
Several Circle K victims have filed lawsuits against the convenience store and Bitcoin Depot, alleging that they knowingly conducted the fraud. The Missouri Attorney General ordered a statewide investigation into the kiosks to look into potential violations of consumer protection laws. As crypto ATM scams piled up, 18 states in the U.S. have introduced new regulations to curb such fraudulent activities. According to reports, Circle K’s deal with Bitcoin Depot expires next year. It is not clear whether they will reinstate the partnership. With fewer regulations and less transparency in crypto transactions, it is becoming easier for companies, especially those running crypto ATMs, to scam people.