New legislation seeks to protect consumers from fraudulent transactions.
Senator Durbin Pushes for Crypto ATM Regulations
Illinois Senator Dick Durbin has introduced a bill aimed at reducing fraud at cryptocurrency ATMs across the U.S. The Crypto ATM Fraud Prevention Act, announced on Feb. 25, seeks to implement safeguards for consumers—particularly seniors—who are often targeted by scams.
The Crypto ATM Fraud Prevention Act is commonsense, informing consumers about scams and empowering law enforcement to fight fraud. No one should be cheated out of thousands of dollars by a scammer urging the use of unregulated crypto ATMs.
The Growing Threat of Crypto ATM Scams
Durbin shared a case where a constituent was tricked into depositing $15,000 into a crypto ATM under the false threat of arrest. He warned that this is part of an “alarming trend” affecting the 30,000+ crypto ATMs nationwide.
Key Provisions of the Bill
The legislation proposes:
- Requiring ATM operators to warn users about scams.
- Limiting first-time ATM users to $2,000 daily or $10,000 total in deposits.
- Mandatory verbal confirmations for deposits over $500 from new users.
- Special fraud protections within the first two weeks of ATM use.
- Full refunds for victims under certain conditions.
Crypto Fraud on the Rise
According to the FBI, Americans lost over $5 billion to crypto scams in 2023, many of which targeted elderly victims. Durbin’s bill aims to give law enforcement better tools to track and combat these crimes.
Uncertain Future in Congress
Durbin’s bill is one of the first crypto-focused proposals in the new congressional session. However, with a Republican-controlled House and President Trump in office, its chances of becoming law remain uncertain.
Disclaimer:
The information provided on 13Desk is for informational purposes only and should not be considered financial advice. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. Investing in cryptocurrencies carries risks, and you should only invest what you can afford to lose. 13Desk is not responsible for any financial losses incurred from your investment activities.
