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Date: 2025-02-25 20:13:33
Senator Dick Durbin from Illinois has put forward new legislation that aims to combat fraud at cryptocurrency ATMs, a rising issue for law enforcement agencies.
The Crypto ATM Fraud Prevention Act seeks to establish transaction limits and enforce additional consumer safeguards to thwart scams that primarily target older individuals.
As reported by NBC News, Durbin's bill proposes a daily transaction cap of $2,000 for new users and a limit of $10,000 over a 14-day period. The bill also mandates ATM operators to personally interact with first-time users attempting transactions exceeding $500 and provide complete refunds for fraud victims who file police reports within 30 days.
The senator highlighted that scammers exploit these machines by coercing victims into depositing substantial amounts of cash under false pretenses.
"As our technology has advanced and become more sophisticated, so have scammers," Durbin stated. "Malicious actors are now using intimidation and manipulation to frighten Americans, particularly seniors, into investing their life savings into cryptocurrency ATMs."
Cryptocurrency ATMs have proliferated rapidly in recent years, appearing in gas stations and grocery stores nationwide. Law enforcement agencies have reported an increase in scams, with the Federal Trade Commission noting $114 million in losses linked to cryptocurrency ATMs in 2023 alone.
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Fraudsters often disguise themselves as government officials or law enforcement officers, pressuring victims into making payments to avoid fictitious fines or legal issues.
Durbin mentioned a case where a store owner in Springfield, Illinois, removed a cryptocurrency ATM after seeing multiple elderly customers depositing large sums while speaking on their phones, seemingly under duress.
Similar apprehensions have led some states, such as Minnesota, California, and Vermont, to implement daily transaction limits on cryptocurrency ATMs. Durbin's bill would permit state regulations to remain in effect as long as they are not less rigorous than federal rules.
The bill would also necessitate ATM operators to create fraud prevention policies and submit them to the Financial Crimes Enforcement Network. Companies found in violation of the proposed regulations could incur fines of $10,000 per day.