💰 CRYPTO ATM Operators urged to Combat FRAUD
Seven U.S. Democratic Senators, led by Senate Judiciary Committee Chair Dick Durbin, have called on the top 10 Bitcoin ATM operators to address rising fraud targeting elderly Americans. In a Sept. 12 statement, Durbin, alongside Senators Elizabeth Warren and others, cited alarming Federal Trade Commission (FTC) data showing that fraud losses involving Bitcoin ATMs (BTMs) reached $65 million in the first half of 2023.
The Senators highlighted that elderly Americans—those 60 and older—are more than three times as likely to report losses through BTMs compared to younger individuals. The letter was addressed to CEOs of prominent BTM operators, including Bitcoin Depot, CoinFlip, and Bitstop, urging them to act swiftly in combating scams associated with their machines.
The call to action follows multiple reports of BTM-related fraud, including a July case where a business owner removed a Coinhub ATM due to frequent scams, and a New York Times article detailing how scammers coerced elderly individuals into using crypto ATMs to send funds. The Senators expressed concern about the role these ATMs play in widespread financial fraud and requested detailed responses on measures taken to prevent such fraud, including the use of warnings, transaction limits, and insurance against fraudulent activities. Responses are expected by Oct. 4.
Recent FTC data further supports the Senators' concerns, revealing a tenfold increase in crypto ATM scams since 2020, with losses soaring from $12 million to $144 million. The FBI also reported that $5.6 billion was lost to crypto fraud in 2023, marking a 45% increase from the previous year. More than two-thirds of the losses involved older adults, with a median loss of $10,000 in cases involving Bitcoin ATMs.
Do you think this will slow down mass adoption or is it just a minor issue to fix?
Drop your opinion in the comments!
