TechFlow reports on February 26, according to Decrypt, Illinois Senator Dick Durbin introduced the "Cryptocurrency ATM Fraud Prevention Act," aimed at curbing the growing number of fraud cases associated with cryptocurrency ATMs. The bill would impose strict transaction limits on new users, prohibiting daily spending exceeding $2,000 or more than $10,000 within 14 days, and require operators to directly contact users attempting transactions over $500 to ensure they are not being manipulated by fraudsters.
The bill also mandates that companies must provide full refunds if victims report fraudulent activity within 30 days of a transaction. In introducing the legislation, Senator Durbin shared the case of an Illinois man who was defrauded of $15,000 after receiving 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 U.S. Federal Trade Commission (FTC) shows that consumer-reported losses due to Bitcoin ATM scams have increased nearly tenfold since 2020, surpassing $110 million in 2023 alone. Individuals aged 60 and older are more than three times as likely to be targeted compared to younger people.
