1. Senators Demand Action on Crypto ATM Scams
2. Crypto ATM Fraud Surge Alarms Regulators and FBI
3. Next Steps for Crypto ATM Firms

A group of United States Senate Democrats, including Majority Whip Dick Durbin, has called on crypto ATM operators to tackle fraud. The Senators sent letters on September 11th to ten leading crypto ATM operators, requesting immediate action.

Senators Demand Action on Crypto ATM Scams

The letters sent to CEOs of Bitcoin Depot and CoinFlip, among other companies, focused on risks associated with using Bitcoin ATMs for fraudulent activities. The Federal Trade Commission (FTC) noted that scam-related losses connected to Bitcoin ATMs totaled $65 million in the first two quarters of 2023. Moreover, fraud against elderly Americans has increased, and people over sixty are three times more likely to fall victim to scams.

Crypto ATM Fraud Surge Alarms Regulators and FBI

The increase in fraud cases involving Bitcoin ATMs has elicited concern from various regulatory bodies and law enforcement agencies. The FTC stated that crypto ATM scams had seen a tenfold increase between 2020 and the following year alone. Losses have jumped from $12 million to $144 million. The FBI also highlighted that the absolute value of losses due to crypto fraud was $5.6 billion in 2023, 45% higher than the previous year. In 2023, the average loss per Bitcoin ATM-related scam was $10,000, and senior citizens were most likely to be targeted.

Next Steps for Crypto ATM Firms

The Senate Democrats’ push is part of a more extensive campaign against financial fraud and for the country’s vulnerable citizens. To strengthen this effort, legislators have issued a formal letter to the operators of crypto ATMs. The letter asks them to provide detailed information to accelerate the solution of this emerging problem. Involved companies should show they are keen on preventing fraud and protecting the customers’ interests. In their letters, the Senators demanded that companies reveal whether they give their customers information on possible scams. They also queried whether firms should cap the number of fraudulent transactions to prevent large-scale fraud, and whether customers have protections, such as insurance, in case of fraud. These questions will help identify the need for more actions and changes in the existing laws and regulations.

Senators continue to push for measures on crypto ATMs to protect citizens from financial losses and ensure greater security for vulnerable populations.