U.S. Senator Introduces Bill to Regulate Crypto ATMs and Protect Consumers from Scams

A United States legislator has introduced new legislation to combat fraud at cryptocurrency ATMs across the country.

Speaking on the Senate floor on February 25, Senator Dick Durbin highlighted a growing trend of scams exploiting unsuspecting users, particularly senior citizens. He cited the case of a constituent who was tricked into depositing $15,000 into a crypto ATM after receiving a fraudulent call claiming he had an outstanding arrest warrant. The scammer instructed the victim to “pay the fine” in cryptocurrency to avoid jail.

Notably, The Federal Bureau of Investigation (FBI) recently reported that Americans lost over $5 billion to crypto-related fraud in 2023, with senior citizens being frequent targets.

Durbin’s proposed Crypto ATM Fraud Prevention Act seeks to impose stricter regulations on the more than 30,000 crypto ATMs in the U.S. The bill would require operators to implement stronger consumer warnings and fraud prevention measures. It also aims to reduce financial losses for victims and provide law enforcement with better tools to track and combat criminals using these ATMs for illicit activities.

“This bill will require crypto ATM operators to warn consumers about scams and take reasonable steps to prevent fraud at their machines,”

Durbin stated.

“It will also introduce measures to limit the amount consumers lose and equip law enforcement with new tools to track down and fight back against criminals.”

If passed, the bill would enforce a two-week protection period for first-time ATM users, set deposit limits of $2,000 per day and $10,000 in total, and require operators to verbally confirm deposits exceeding $500. In certain cases, full refunds for fraud victims would also be mandatory.

Meanwhile, a report from Research and Market suggests that the global crypto ATM market, valued at $87.35 million in 2023, is projected to grow to $2.58 billion by 2032. This growth is attributed to the rising acceptance of cryptocurrencies and supportive regulatory policies worldwide.

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