Senator Durbin's Bill: Curbing Crypto ATM Fraud with Limits and Refunds

Illinois Senator Introduces Cryptocurrency ATM Regulation Bill, Requires Transaction Limits and Refund Protections

In a move to combat the rising fraud associated with cryptocurrency ATMs, Illinois Senator Dick Durbin has introduced the "Cryptocurrency ATM Fraud Prevention Act." The bill aims to impose strict transaction limits on new users, prohibiting them from spending more than $2,000 per day or $10,000 within 14 days. Operators will be required to directly contact users attempting transactions over $500 to ensure they are not being manipulated by fraudsters.

The bill also stipulates that if a victim reports fraud within 30 days of the transaction, companies must provide a full refund. Senator Durbin shared a case in the proposal where a man from Illinois was scammed out of $15,000. The man received a scam call from someone claiming to be a deputy sheriff, stating he had missed jury duty and could avoid arrest by paying a fine via a Bitcoin ATM.

Data from the Federal Trade Commission (FTC) shows that consumer-reported losses due to Bitcoin ATM fraud have increased nearly tenfold since 2020, surpassing $1.1 billion in 2023 alone. People over 60 are more than three times as likely to be scammed compared to younger individuals.

The bill is a response to the growing concern over cryptocurrency ATM fraud, which has seen a significant increase in recent years. By imposing transaction limits and requiring operators to verify users' identities, the bill aims to protect consumers from falling victim to scams and fraudulent activities.

The cryptocurrency industry has been grappling with regulatory challenges for some time, and this bill is the latest attempt to address some of the concerns surrounding the use of cryptocurrency ATMs. As the industry continues to grow, it is essential that regulators take steps to protect consumers and ensure the safety and security of cryptocurrency transactions.