Wormhole (w) 
Illinois Senator Introduces Legislation to Combat Cryptocurrency ATM Fraud
Illinois Senator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act, a new legislation aimed at reducing cryptocurrency scams that disproportionately target older adults. The proposed bill would impose transaction limits and require additional consumer protections to prevent fraudulent activities.
Key Provisions of the Bill
According to the proposed legislation, new users would be capped at $2,000 in daily transactions and $10,000 over a 14-day period. Additionally, ATM operators would be required to directly communicate with first-time users attempting transactions over $500 and provide full refunds for fraud victims who file police reports within 30 days.
“As our technology has evolved and become more sophisticated, so have scammers,” Durbin said. “Nefarious actors are now using intimidation and manipulation to scare Americans, particularly seniors, into dumping their life savings into cryptocurrency ATMs.”
The Rise of Crypto ATM Scams
Crypto ATMs have expanded rapidly in recent years, appearing in gas stations and grocery stores across the country. Law enforcement agencies have reported an increase in scams, with the Federal Trade Commission noting $114 million in losses linked to cryptocurrency ATMs in 2023 alone.
Common Tactics Used by Scammers
Fraudsters often pose as government officials or law enforcement officers, coercing victims into making payments to avoid fictitious fines or legal trouble. Some scammers may also use intimidation and manipulation to pressure victims into depositing large sums of cash.
State Regulations and Penalties
Similar concerns have prompted some states, including Minnesota, California, and Vermont, to implement daily transaction limits on cryptocurrency ATMs. Durbin’s bill would allow state regulations to remain in effect as long as they are not less stringent than federal rules. Companies found violating the proposed regulations could face fines of $10,000 per day.
Tips to Avoid Crypto ATM Scams
- Be cautious when using cryptocurrency ATMs, especially if you are a new user.
- Verify the identity of anyone claiming to be a government official or law enforcement officer.
- Never deposit large sums of cash under pressure or duress.
- File a police report immediately if you suspect you have been a victim of fraud.
Stay up-to-date with the latest news on cryptocurrency and finance by following Global Crypto News.
