Illinois Senator Dick Darbin has introduced new laws aimed at reducing fraud at Cryptocurrency ATM, which is a growing concern for law enforcement agencies.
Crypto ATM Fraud Prevention Act will implement the limit of transaction and require additional consumer protection to prevent scams that target older adults inconsistently.
As NBC NewsDurbin bill will cap at $ 2,000 in daily transactions and $ 10,000 in a period of 14-day. For this, ATM operators will also need to communicate with users for the first time and provide full refunds for fraud victims who file police reports within 30 days.
Advanced scam
The senator insisted that scammers exploit these machines by putting pressure on the victims to deposit large amounts under false pretense.
“As our technology has developed and has become more sophisticated, so there are scammers,” Durbin said. “Unforty actors are now using scare and manipulation to intimidate Americans, especially senior citizens, to dump their lives into a cryptocurrency ATM.”
Crypto ATM has expanded rapidly in recent years, which is visible in gas stations and grocery stores across the country. Law enforcement agencies have reported an increase in scams, the Federal Trade Commission alone noted $ 114 million in the damage associated with Cryptocurrency ATMs in 2023 alone.
Fraud is often in the form of government officials or law enforcement officers, forcing the victims to pay to avoid imaginary fines or legal problems.
Darbin cited a case in which a springfield, Illinois, store owner removed a cryptocurrency ATM after depositing a large amount of money to many elderly customers, speaking on his phone, which appears to be under the Duresh.
Similar concerns have inspired some states including Minnesota, California and Vermont to implement daily transactions boundaries at Cryptocurrency ATMs. Durbin’s bill will allow the state’s rules to be implemented until they are less rigid than the federal rules.
The bill will also need to establish fraud prevention policies to ATM operators and submit them to Financial Crime Enforcement Network. Companies violating the proposed rules may be fined $ 10,000 per day.
