Bipartisan Bill Aims to Stop Crypto ATM Scams Preying on Seniors

The U.S. Senate has introduced the Crypto ATM Fraud Prevention Act of 2025, a legislative effort spearheaded by Senator Dick Durbin (D-IL) and supported by lawmakers including Cynthia Lummis (R-WY), to combat the rising tide of scams targeting cryptocurrency kiosks. The bill, formally S.710, seeks to impose stringent regulations on virtual currency kiosks, including mandatory transaction limits, enhanced consumer protections, and penalties for non-compliance. According to the Federal Trade Commission (FTC), consumer losses from Bitcoin ATM scams surged to $114 million in 2023, a tenfold increase from 2020, underscoring the urgency of federal intervention US Senate Introduces Bill to Curb Crypto ATM Scams, Impose $10,000 Fine for Violators^[3].

The legislation introduces a $2,000 daily and $10,000 14-day transaction cap for new users, aiming to curtail large-scale fraudulent withdrawals. For transactions exceeding $500, new users must undergo live verbal confirmation with a company representative to verify intent and detect coercion. Victims of scams who report incidents within 30 days would be entitled to full refunds, including fees, provided they file a report with law enforcement. The bill also mandates that operators register all kiosk locations with the Treasury Department and submit anti-fraud policies to FinCEN, including the appointment of a compliance officer to oversee adherence S.710 - Crypto ATM Fraud Prevention Act of 2025^[1].

Lummis, who has long advocated for addressing crypto kiosk fraud, emphasized the vulnerability of seniors to these scams. In Wyoming, local law enforcement reported over $645,000 in losses from 50 cases involving Bitcoin ATMs, with victims often targeted by impersonators claiming to be government officials. Lummis’ 2023 bill, which sought to require kiosk operators to maintain accurate FinCEN addresses, expired, but she expressed hope to incorporate similar measures into the broader market-structure bill AARP Pushes States to Crack Down on Crypto ATMs^[5]. The new legislation aligns with state-level efforts, as 19 states—including Arizona, Iowa, and Vermont—have enacted laws imposing transaction limits, refund policies, and operator licensing requirements In Senate Floor Speech, Durbin Announces Introduction Of Crypto ATM Fraud Prevention Act^[6].

The bill’s provisions reflect growing bipartisan concern over the anonymity and irreversibility of crypto transactions. The FBI reported nearly 11,000 complaints related to crypto kiosks in 2024, with losses exceeding $247 million, and victims over 60 accounting for 99% of reported cases. Senator Durbin highlighted a constituent’s experience of being scammed out of $15,000 after a fake law enforcement call directed them to a crypto ATM. “These machines have devastated victims’ lives,” said Amy Nofziger of the AARP Fraud Watch Network, noting that many victims lose life savings to schemes involving threats or false legal claims .

Operators face significant penalties for non-compliance, including a $10,000 daily fine per violation. The Treasury Department would enforce these penalties, with violations including failure to provide mandatory disclosures, maintain anti-fraud policies, or issue receipts with transaction details such as blockchain hashes. The bill also preempts conflicting state laws but allows states to impose stricter protections S.710 - Crypto ATM Fraud Prevention Act of 2025^[1]. Consumer advocacy groups, including Americans for Financial Reform and AARP, have endorsed the legislation as a “good first step” toward reducing fraud, though they acknowledge its limitations in addressing all systemic risks .

The legislation’s introduction follows a broader regulatory push, with the House recently passing the GENIUS Act to establish a framework for digital assets. While crypto ATM operators like Bitcoin Depot and CoinFlip have expressed support for consumer protections, some industry representatives have raised concerns about potential barriers to financial access. The bill’s success in a Republican-controlled Congress remains uncertain, but its focus on protecting vulnerable populations and aligning with state-level trends highlights a critical intersection of innovation and consumer safety in the digital finance sector .