When I asked if they had any ATMs that allowed crypto purchase via credit or debit card, I got a one-word reply, "no", and when I replied that I thought they were being very shortsighted by not offering a credit/debit card option for customers, they said "thank you for your feedback" and that was the end of the e-mail. Not the level of responsiveness I'm looking for in a company that wants my money.
Stolen credit cards would be used to buy bitcoins at your ATM, and then you would get hit with chargebacks, and now you are out of bitcoins and out of money, potentially facing legal problems, too. KYC could (maybe) curtail it which makes your ATM business more expensive to run and less attractive to potential users.
There are KYC and AML safeguards that can be put in place, and keeping meticulous records of who buys or tries to buy crypto with the ATM will keep us out of trouble. I am well aware that there will be costs incurred by putting KYC and AML procedures in place, but that's just a cost of doing business and we will incorporate that in our business plan.