Post-Super Bowl Bitcoin ATM Red Flags
The Cryptocurrency Compliance Cooperative has developed a guide for Bitcoin ATM operators to detect and report potential human trafficking.
With the Super Bowl wrapped up, Bitcoin ATM operators need to ensure that their kiosks are not being used to facilitate sex trafficking and related money laundering. Historically, there has been a significant increase in arrests involving sex trafficking during Super Bowl week near the event. To assist with efficient detection and reporting of human trafficking, the Crypto3C has developed a guide for Bitcoin ATM operators to reference customer red flags.
Human Trafficking Red Flags:
- Young women that are making small-dollar transactions. Typical transactions are under $200 and are used to pay for ads and to funnel money to their handler.
- Numerous young women sending funds to the same wallet or wallet cluster.
- Blockchain forensics attributes wallets to adult search, rub ratings, or payment processors for high-risk industries (Eg. GoCoin). Please reach out to Anti-Human Trafficking Intelligence Initiative for additional wallets that are found to be related to Human Trafficking.
- A woman who usually transacts in a different location is now actively purchasing Bitcoin in Los Angeles.
- A woman is seen purchasing Bitcoin with a man in the ATM video/photo. The woman may show signs of domestic violence, drug abuse, or may have tattoos suggestive of branding (name of male, gang-related tattoos, etc.).
- The same phone number or account is being used by multiple women to make purchases. Transactions may occur at different locations around the same area.
- Phone number listed on ads for multiple women. Please reach out to Anti-Human Trafficking Intelligence Initiative for assistance with scanning numbers against numbers used on known escort sites.
- Ad/social media language indicates a third party is running the account. For a list of social media terminology please see https://sharedhope.org/the-problem/trafficking-terms/
- Investigation into social media posts indicates they are being isolated from friends/family. Oftentimes social media shows that they are in a new relationship.
- Association with known high-risk business (massage parlor, strip club). The phone number used may be associated with the massage parlor as well.
Guidance for filing a Suspicious Activity Report related to human trafficking can be found on the FinCEN website.
Although major sporting events like the Super Bowl attract nefarious actors, human trafficking is by no means isolated to just these timeframes. The Cryptocurrency Compliance Cooperative is committed to preventing human trafficking. We encourage all Bitcoin ATM operators to create detection methods for year-round coverage. For additional information to develop an anti-human trafficking program within your organization, Crypto3C member Anti-Human Trafficking Intelligence Initiative has created an Extensive Red Flag Guide.
For more information and resources regarding typologies or if you would like learn more about the Crypto3C please contact us.