TLDRSenator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act to combat rising scamsBill would limit new users to $2,000 daily and $10,000 within 14 daysCompanies would be required to contact users making transactions over $500Victims reporting fraud within 30 days would be entitled to full refundsFTC data shows crypto ATM scam losses reached $110 million in 2023, with older adults particularly vulnerableIn response to a growing wave of cryptocurrency ATM scams, Illinois Senator Dick Durbin has introduced the Crypto ATM Fraud Prevention Act, announced on Tuesday, February 25, 2025. The bill would impose transaction limits and require operators to implement new safety measures.The proposed bill comes as FTC data reveals that reported losses from Bitcoin ATM scams have increased nearly tenfold since 2020, with victims losing over $110 million in 2023 alone. Many of these scams target older adults, who are three times more likely to fall victim than younger individuals.“As our technology has evolved and become more sophisticated, so have scammers,” said Durbin, the top Democrat on the Senate Judiciary Committee. “Nefarious actors are now using intimidation to scare Americans, particularly seniors, into dumping their life savings into cryptocurrency ATMs.”I’m on the Senate floor announcing new legislation—my Crypto ATM Fraud Prevention Act—to help stop fraud at crypto ATMs. Watch. https://t.co/JZqjfYkhat— Senator Dick Durbin (@SenatorDurbin) February 25, 2025Under the proposed regulations, new users would be prohibited from spending more than $2,000 daily or $10,000 within a two-week period. For transactions exceeding $500, companies would be required to speak directly with customers to verify legitimacy.The legislation would mandate full refunds for users who report fraud to police and alert ATM operators within 30 days. Companies failing to comply could face fines of $10,000 for each day violations persist.Durbin highlighted a New Lenox man who lost $15,000 after receiving a call from someone pretending to be a deputy. The scammer claimed the man had missed jury duty and could avoid arrest by paying a fine through a Bitcoin ATM.“There was no way to trace the transaction to the scammer and no way to get the money back,” Durbin explained. “This is just one example of a growing trend of crypto ATM fraud.”Victims Speak OutEric Reisman, a 67-year-old retired special education teacher, lost $7,000 in January after falling for a jury duty scam. “I was hypnotized,” Reisman told NBC News. “If somebody called me and said, ‘Wait a second, what are you doing?’ that would have saved me.”The legislation comes as Bitcoin ATMs have become increasingly common in the United States. According to Coin ATM Radar, there are now nearly 30,000 such machines across the country, often in gas stations and grocery stores. The U.S. leads globally in Bitcoin ATM installations, followed by Canada with around 3,000 machines and Australia with 1,162.While these ATMs provide legitimate services for cryptocurrency enthusiasts, they have become tools for various scams. Common tactics involve impersonating government officials and creating urgency that pushes victims to act quickly.The Senate bill follows an inquiry last fall, when Democratic senators questioned how the largest Bitcoin ATM operators were protecting elderly users. The companies reported requiring users to acknowledge fraud warnings, with most setting daily transaction limits around $25,000 – far higher than the $2,000 limit proposed.Some states have already taken action, with Minnesota, California, and Vermont implementing daily transaction limits. The Senate bill would defer to state regulations if they are equally or more strict.Industry response has been mixed. A CoinFlip spokesperson stated that thousands use their kiosks daily for “legitimate transactions,” calling them “critical” to the cryptocurrency sphere. “We support legislation that includes strong protections for consumers, while preserving their right to access digital currencies.”Critics argue that scammers might direct victims to multiple ATM locations to evade transaction limits. However, consumer advocacy groups see the bill as a positive step.Mark Hays of Americans for Financial Reform called the legislation a “good first step” in tackling practices that have allowed fraud to flourish. “This bill won’t solve all those problems, but it can help.”The FTC’s Emma Fletcher noted that “scammers are using these machines as a way to take money from people more than we’ve seen in the past.” With cryptocurrency adoption growing, advocates hope the Crypto ATM Fraud Prevention Act will protect vulnerable consumers while allowing legitimate access to digital currency services.The post Senate Bill Proposes Transaction Limits for Crypto ATMs to Prevent Fraud appeared first on Blockonomi.