The proposed bill would limit transactions for new users, require fraud alerts, and ensure refunds for victims.
According to data provided to NBC News by the Federal Trade Commission (FTC), cryptocurrency ATMs are increasingly being used by scammers to carry out fraud, particularly targeting those over 60. The amount of money consumers reported losing due to scams involving crypto ATMs has nearly multiplied tenfold since 2020, surpassing $110 million in 2023 alone.
In response to this issue, Illinois Senator Dick Durbin has introduced the “Crypto ATM Fraud Prevention Act,” a bill aimed at imposing new regulations to curb the rising wave of fraud associated with these devices.
The legislation, announced on February 25, would place limits on transactions through cryptocurrency ATMs and require companies to offer full refunds to victims who report fraud within 30 days of the transaction.
Durbin stated:
“These measures represent common-sense barriers that will prevent countless Americans, particularly seniors, from losing thousands of dollars of their hard-earned savings due to criminal scams.”
Under the proposed rules, new users would be prohibited from making transactions exceeding $2,000 per day or $10,000 within a 14-day period. The law would also require operators to contact users attempting transactions over $500 to ensure they have not been scammed.
Durbin explained how scammers pose as government officials or bank representatives, making urgent threats that prompt victims to act quickly and deposit large sums of money into crypto ATMs.
