Illinois Senator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act, which aims to regulate the crypto ATM industry in response to increasing scams targeting vulnerable individuals. The legislation would limit daily and 14-day spending to $2,000 and $10,000, respectively, for new users purchasing cryptocurrency at a bitcoin ATM. It also requires companies to speak directly with customers making transactions over $500 and mandates full refunds for victims who file police reports within 30 days of the fraudulent transaction.
Scams involving bitcoin ATMs have resulted in at least $114 million in losses reported to the FTC in 2023, with older adults being particularly susceptible. One victim, a retired special education teacher, lost $7,000 after falling for a jury duty scam and feeding bills into a bitcoin ATM. The Senate bill aims to address regulatory gaps and protect consumers from such fraudulent schemes by implementing stricter controls on crypto ATM transactions.
Consumer watchdogs have called for federal oversight of the industry, with some states already having daily transaction limits. The bill, if passed, would allow the Treasury Department to fine companies for violations, potentially up to $10,000 per day. Several crypto ATM operators, including Bitcoin Depot, CoinFlip, and Athena Bitcoin, have not provided immediate comments on the proposed legislation.
The legislation is endorsed by watchdog groups like Americans for Financial Reform as a positive step towards addressing fraudulent practices within the crypto industry. While it may not solve all problems, it is seen as a necessary measure to protect consumers and prevent fraud from flourishing in the crypto ATM space.
Note: The image is for illustrative purposes only and is not the original image associated with the presented article. Due to copyright reasons, we are unable to use the original images. However, you can still enjoy the accurate and up-to-date content and information provided.
