"Durbin's Crypto ATM Fraud Prevention Act: A $110M Scam Solution"

Illinois Senator Proposes Bill to Regulate Crypto ATMs Nationwide

Crypto ATMs, once hailed as a convenient way for enthusiasts to buy and sell cryptocurrencies, have become a target for scammers, leaving many victims, including elderly individuals, with significant financial losses. In response, Illinois Senator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act, aiming to impose new regulations to curb the rising tide of fraud associated with these machines.

The legislation, announced on Tuesday, seeks to place strict transaction limits on crypto ATMs and require companies to offer full refunds to victims who report fraud within 30 days of the transaction. Durbin, speaking on the Senate floor, emphasized the importance of these measures in preventing Americans, particularly senior citizens, from losing their hard-earned savings to criminal scams.

Under the proposed rules, new users would be prohibited from spending more than $2,000 daily or $10,000 within 14 days. The bill would also mandate that users attempting transactions over $500 be contacted directly by operators to ensure fraudsters are not manipulating them. Durbin kicked off his proposal by sharing the story of a New Lenox man who was scammed out of $15,000 after receiving a call from someone pretending to be a deputy.

The scammer told him he had missed jury duty and could avoid arrest by paying a fine through a Bitcoin ATM. The victim, worried about the consequences, followed the instructions and deposited the money, only to realize it was a scam. Durbin noted that this was just one example of a growing and alarming trend of crypto ATM fraud.

As the world's largest cryptocurrency gains widespread institutional interest, with 18 states, including Illinois, proposing to establish Bitcoin Reserves, crypto-related scams are also on the rise. Data provided to NBC News by the Federal Trade Commission (FTC) revealed that the amount of money consumers have reported losing to scams involving Bitcoin ATMs has nearly increased tenfold since 2020, topping $110 million in 2023 alone.

Durbin explained how scammers impersonate government officials or bank representatives, making urgent threats that push victims to act quickly and deposit large sums into Bitcoin ATMs. FTC data also showed how older adults are disproportionately targeted, with