Senator Dick Durbin from Illinois has introduced a bill aimed at reducing fraud at cryptocurrency ATMs across the United States.
The Crypto ATM Fraud Prevention Act seeks to add new protections for consumers, particularly older adults, who are often targeted by scams.
During a speech on February 25, Durbin shared the story of a local resident who was tricked into depositing $15,000 into a crypto ATM after being falsely told there was a warrant for his arrest.
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The senator pointed out that this type of fraud is becoming more common, with over 30,000 crypto ATMs operating in the country.
If passed, the bill would require crypto ATM operators to warn users about scams and take steps to prevent fraud. It also introduces limits to reduce financial losses when scams do occur.
According to Durbin, the proposed regulations would give law enforcement better tools to track down fraudsters and hold them accountable.
The proposed law includes additional protections for first-time users of crypto ATMs. For two weeks after their initial transaction, new users would have a daily deposit limit of $2,000 and a total cap of $10,000. Any deposit over $500 from a new user would also require verbal confirmation. In some cases, victims may be eligible for full refunds.
Meanwhile, Senator Bill Hagerty recently proposed the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. What is the bill’s purpose? Read the full story.
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