To fight crypto scams, Senate bill would limit spending at bitcoin ATMs

The Crypto ATM Fraud Prevention Act proposed by Sen. Dick Durbin would prevent new users from spending more than $2,000 in a day at a bitcoin ATM.

Illinois Sen. Dick Durbin announced legislation Tuesday that would institute sweeping new regulations for the nation’s crypto ATM industry.

The machines have come under increasing scrutiny as the kiosks are used for scams where victims have lost thousands of dollars — in a single visit.

The Crypto ATM Fraud Prevention Act would prevent new users from spending more than $2,000 in a day or $10,000 over a 14-day period to purchase cryptocurrency at a bitcoin ATM. The bill would also require companies to speak directly with new customers seeking to make transactions over $500 and mandate full refunds when those users file a police report and alert operators within 30 days of their transaction.

“As our technology has evolved and become more sophisticated, so have scammers,” Durbin, the top Democrat on the Senate Judiciary Committee, said in a statement. “Nefarious actors are now using intimidation and manipulation to scare Americans, particularly seniors, into dumping their life savings into cryptocurrency ATMs.” The bill, he said, would “help curb the efficacy of these scams.”

Sen. Dick Durbin, D-Ill., said his bill would "help curb the efficacy" of crypto ATM scams.Anna Moneymaker / Getty Images fileAt least $114 million in losses from scams involving bitcoin ATMs were reported to the Federal Trade Commission in 2023. Advocates and law enforcement say older adults are particularly vulnerable to such crimes.

https://www.nbcnews.com/news/us-news/senate-crypto-atm-bitcoin-scam-rcna193495

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