In February 2025, Illinois Senator Dick Durbin and three colleagues introduced the Crypto ATM Fraud Prevention Act in the US. The initiative aims to enhance consumer protection and enforce stricter rules on crypto ATM operators.
Introduction of the New Law
The bill proposed by Senator Durbin mandates crypto ATM operators to take measures to prevent fraud. Operators are required to display scam warnings and use analytics to detect suspicious activities.
Consumer Protection Measures
Legislators propose limiting new users' deposits during their first two weeks. The daily deposit limit is $2,000, with a maximum total of $10,000. Transactions over $500 require phone call confirmation.
Rising Fraud in Crypto ATMs
The Federal Trade Commission reports a significant increase in fraud reports involving US crypto ATMs. In 2023, the fraud loss was $100 million, with an additional $65 million reported in the first half of 2024.
Durbin's bill highlights the need to enhance security measures for crypto ATM users, especially seniors who are more often targeted by fraudsters.
