Durbin Proposes Bill to Curb Crypto ATM Fraud
Illinois Senator Dick Durbin has unveiled a new bill aimed at preventing fraud associated with cryptocurrency ATMs. This legislative initiative responds to the escalating financial losses suffered by Americans due to crypto ATM scams.
According to the Federal Trade Commission (FTC), Americans lost $66 million to these scams in the first half of 2024. Senator Durbin’s proposed legislation would require crypto ATM operators to take proactive measures, including warning consumers about potential scams and implementing steps to prevent fraudulent activities at their machines. Furthermore, the bill seeks to establish safeguards that limit the amount individuals lose if they are defrauded.
“There are now more than 30,000 cryptocurrency ATMs in this country, and criminals are using them to cheat Americans out of their hard-earned savings, totaling $114 million in 2023 alone,” stated Senator Durbin. “Most of the victims are senior citizens. It’s past time that we put some common-sense guardrails in place to stop fraud in this largely unregulated industry.”
The bill also stems from concerning reports. In 2023, the FBI’s Internet Crime Complaint Center (IC3) received nearly 2,700 complaints related to crypto ATM fraud from individuals aged 60 and older—more than all other age demographics combined.
In addition to consumer protection measures, the senator’s bill would provide law enforcement agencies with “new tools” to track and apprehend crypto ATM fraudsters. The introduction of this legislation comes at a time when the number of crypto ATMs in the U.S. is declining. Data from Coin ATM Radar indicates that the U.S. lost 1,228 machines in February, which suggests market consolidation or reduced demand.
