Senator Dick Durbin is proposing a new law to crack down on crypto ATM scams. The move comes as the number of these machines in the US is dropping.
A Surge in Crypto ATM Scams
The Federal Trade Commission (FTC) reported a staggering $66 million in losses from crypto ATM scams in the first half of 2024 alone. This follows a total of $114 million in losses in 2023. Senator Durbin highlighted that seniors are disproportionately affected, with the FBI receiving almost 2,700 fraud complaints from people aged 60 and over in 2023 – more than any other age group.
Durbin’s Proposed Solution
Durbin’s bill aims to protect consumers by:
- Warning consumers: Requiring crypto ATM operators to clearly warn users about potential scams.
- Fraud prevention: Implementing measures to prevent fraud directly at the machines.
- Loss limitation: Establishing limits on losses for victims of scams.
- Enhanced law enforcement: Giving law enforcement better tools to track down and prosecute criminals.
Crypto ATMs on the Decline
Interestingly, the number of crypto ATMs in the US has been falling. February alone saw a decrease of 1,228 machines, according to Coin ATM Radar. This decline coincides with the increased focus on regulating the industry and addressing the rising number of scams.
