Amidst ongoing conversations about crypto scams and hacks, a U.S. senator has proposed a bill to tackle crypto ATM fraud.Â
Senator Dick Durbin of Illinois, while speaking at the Senate, noted that senior citizens had become prime targets of crypto scams. He cited an example of someone who had been defrauded under the guise of speaking with a law enforcement agent.
Democrats Push Bill to Combat Crypto ATM Fraud and Protect Victims
The Democrats proposed the Crypto ATM Fraud Prevention Act, which would not only prevent crypto ATM frauds but also help victims recover their funds. The US is reportedly home to over 30,000 crypto ATMs, making it a prime target for such crimes.
The Crypto ATM Fraud Prevention Act, among other things, will require ATM operators to provide disclosures alerting users to possible scams. And also take steps to address such events.
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, 2025
Furthermore, the bill puts a cap on daily deposits. Users cannot deposit more than $2,000 per day or $10,000 in total. For first-time users, any deposit above $500 would require verbal confirmation. In certain cases, fraud victims could receive full refunds.
North Dakota Takes Action with House Bill 1447
Senator Durbin is not alone in seeking ways to curb and combat crypto ATM fraud. Lawmakers in North Dakota have also introduced House Bill 1447. This bill seeks to limit daily crypto ATM transactions to $1,000 and cap fees at $5 or 3% per transaction. Lisa Kruse, commissioner of North Dakota’s Department of Financial Institutions, believes these measures will help curb rising scams.
NORTH DAKOTA WANTS TO REWRITE THE CRYPTO ATM GAME
House Bill 1447 just dropped, aiming to put a $1K daily cap on crypto ATM withdrawals and tighten fees to $5 or 3% max.
Why? 103 locals got rugged in 2023, losing $6.5M to scams.
Lawmakers want ATMs to flash fraud warnings and… pic.twitter.com/0FPbA9SzLt
— Mario Nawfal’s Roundtable (@RoundtableSpace) January 23, 2025
Interestingly, FBI data shows that in 2023 alone, over 5,000 cases were reported, leading to losses of more than $100 million. Authorities believe these scams reflect poor security infrastructures in most ATMs.
While some crypto ATM operators welcome the bill, others worry about its impact on their businesses. With fees currently ranging from 8% to 20%, lower fees could make it harder to sustain operations. However, the bill could encourage transparency and competition while making crypto transactions safer.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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