Columbia Standard

U.S. Senate Democratic Whip Dick Durbin has introduced the Crypto ATM Fraud Prevention Act, aiming to combat cryptocurrency scams that target seniors. In a Senate floor speech, Durbin highlighted the unregulated nature of cryptocurrency ATMs and their use by scammers to steal millions from Americans each year.

"There are now more than 30,000 cryptocurrency ATMs in this country. And they are being used by criminals to cheat Americans out of their hard-earned savings to the tune of $114 million in 2023 alone. Most of the victims are senior citizens," said Durbin.

The proposed legislation seeks to implement protective measures for crypto ATM transactions and mandates transparency from operators. "It’s past time that we put some common-sense guardrails in place to stop fraud in this largely unregulated industry," Durbin stated.

Durbin shared an example involving a constituent from New Lenox, Illinois, who lost $15,000 after being coerced into depositing money into a crypto ATM by someone posing as law enforcement. This case exemplifies how scammers exploit these machines' anonymity and irreversibility.

According to Federal Trade Commission data, reported losses from such scams increased significantly between 2020 and 2023—from $12 million to $114 million. The FBI's Internet Crime Complaint Center noted nearly 2,700 complaints from individuals aged 60 and older in 2023.

The bill includes several provisions: requiring warnings about fraud risks at ATMs; mandating anti-fraud policies; protecting new customers with transaction limits and refund options; requiring operator registration with the Treasury Department; and ensuring transaction traceability through receipts.

Joining Durbin as cosponsors are Senators Richard Blumenthal (D-CT), Jack Reed (D-RI), and Peter Welch (D-VT). The bill is supported by organizations including Americans for Financial Reform and Public Citizen.