Latest news with #CryptoATMFraudPreventionAct
Yahoo
01-05-2025
- Business
- Yahoo
U.S. Congressman Pitches Crypto ATMs for Federal Government Buildings
A Texas congressman is asking the federal government to consider installing cryptocurrency ATMs in federal buildings as a way to help foster the pro-digital assets stance pushed by President Donald Trump. Representative Lance Gooden asked the chief of the General Services Administration — the agency that maintains the government's buildings and real estate — to look into putting the automated teller machines into those facilities as a "signal to the public that the government is embracing innovation in a secure and responsible manner," according to a Thursday letter reviewed by CoinDesk. "Expanding accessibility to crypto ATMs within federal buildings aligns with President Trump's vision of positioning the United States as a global leader in cryptocurrency and blockchain technology," he said. The GSA already hosts some traditional ATMs in a few of its facilities, according to its website. The letter requested GSA Acting Administrator Stephen Ehikian review the feasibility of executing the proposal in a way that includes "clear guidelines for the installation and operation of crypto ATMs, focusing on robust identity verification measures and transparency in transaction fees." This proposal lands as the devices have drawn attention for their use in scams, inspiring Senator Dick Durbin, an Illinois Democrat, to push the Crypto ATM Fraud Prevention Act that would put limits on big transactions. And New Jersey is weighing a new bill that would require the ATM operators to warn users about potential scams and provide live customer service. At least one of the ATM operators, Bitcoin Depot, reported last month that transactions and revenue from the machines were down, even as bitcoin (BTC) trading grew during the recent rise in the price. Gooden's committee assignments don't put him in direct touch with the crypto legislation currently moving through Congress, though advocacy group Stand With Crypto has given him an "A" grade for industry friendliness. As a freshman congressman in 2019, Gooden co-authored a bill to declare that managed stablecoins should be regulated by the Securities and Exchange Commission, but more recently, he co-sponsored legislation that opposed a U.S. central bank digital currency (CBDC) — aligning with the industry in general opposition of government digital in to access your portfolio
CBS News
27-02-2025
- Business
- CBS News
Senators introduce Crypto ATM Fraud Prevention Act to fight scams
When 80-year-old Joseph Buentello of Grand Prairie received a call claiming his son was in jail, he panicked. Rushing to his local grocery store, he sent $5,000 through a Bitcoin ATM, only to realize later that he had been scammed. Buentello's experience highlights the vulnerability of many Americans to these scams. "I was scared... I hit the panic button and let my panic take control of my good judgment," Buentello said. This week, a group of U.S. senators introduced the Crypto ATM Fraud Prevention Act aimed at cracking down on crypto ATM scams with federal regulations. The new bill, introduced by Sen. Dick Durbin (D-Illinois), seeks to add layers of protection to Bitcoin ATM transactions and increase transparency from ATM operators. "These measures are common-sense guardrails that will protect countless Americans, particularly senior citizens, from losing thousands of their hard-earned dollars to scams," Durbin said Tuesday on the Senate floor. Bitcoin ATMs are becoming increasingly common, popping up in gas stations, convenience stores, smoke shops, and grocery stores. Five years ago, there were roughly 1,000 cryptocurrency ATMs in Texas. Today, there are more than 3,500 in the state and nearly 30,000 nationwide. These machines offer a legitimate and easy way to buy cryptocurrency, but with convenience comes risk. Last year, the FBI warned that scammers are increasingly using these machines, leading to significant losses for victims. According to the Federal Trade Commission, consumer losses in Bitcoin ATM scams skyrocketed tenfold to $114 million from 2020 to 2023. This figure only includes reported losses, suggesting the actual amount could be higher. The proposed federal legislation includes several measures to protect consumers, particularly first-time users who are most likely to be scam victims: Transaction Limits: New users will have a transaction limit of $2,000 per day and $10,000 total over the first 14 days. Live Confirmation: Transactions greater than $500 will require live, verbal confirmation for new users. Refunds: Full refunds will be provided if a new customer reports fraud within 30 days. Warnings: Operators must provide clear warnings about the risk of fraud. Anti-Fraud Policy: Operators must develop a comprehensive anti-fraud policy and appoint a chief compliance officer. Registration and Disclosure: Operators must register with the Treasury Department and disclose ATM locations. Receipts: Operators must provide receipts with sufficient information to trace the transaction. In an email to CBS News Texas, crypto ATM operator Unbank stated that it already meets most of the proposed requirements and supports measures to enhance fraud prevention. However, the company added, "we strongly oppose provisions that limit financial access, create unnecessary regulatory choke points, and increase compliance burdens without clear fraud-reduction benefits." Other crypto ATM operators have expressed support for efforts to crack down on scams in letters to Congress, with some noting that their current safeguards already go above and beyond to protect consumers. CBS News Texas reached out to several operators for their thoughts on the new proposal.
CBS News
26-02-2025
- Business
- CBS News
Senators introduce bill to combat crypto ATM scams, protect vulnerable Americans
When 80-year-old Joseph Buentello of Grand Prairie received a call claiming his son was in jail, he panicked. Rushing to his local grocery store, he sent $5,000 through a Bitcoin ATM, only to realize later that he had been scammed. Buentello's experience highlights the vulnerability of many Americans to these scams. "I was scared... I hit the panic button and let my panic take control of my good judgment," Buentello said. This week, a group of U.S. senators introduced the Crypto ATM Fraud Prevention Act aimed at cracking down on crypto ATM scams with federal regulations. The new bill, introduced by Sen. Dick Durbin (D-IL), seeks to add layers of protection to Bitcoin ATM transactions and increase transparency from ATM operators. "These measures are common-sense guardrails that will protect countless Americans, particularly senior citizens, from losing thousands of their hard-earned dollars to scams," Durbin said Tuesday on the Senate floor. Bitcoin ATMs are becoming increasingly common, popping up in gas stations, convenience stores, smoke shops, and grocery stores. Five years ago, there were roughly 1,000 cryptocurrency ATMs in Texas. Today, there are more than 3,500 in the state and nearly 30,000 nationwide. These machines offer a legitimate and easy way to buy cryptocurrency, but with convenience comes risk. Last year, the FBI warned that scammers are increasingly using these machines, leading to significant losses for victims. According to the Federal Trade Commission, consumer losses in Bitcoin ATM scams skyrocketed tenfold to $114 million from 2020 to 2023. This figure only includes reported losses, suggesting the actual amount could be higher. The proposed federal legislation includes several measures to protect consumers, particularly first-time users who are most likely to be scam victims: Transaction Limits: New users will have a transaction limit of $2,000 per day and $10,000 total over the first 14 days. Live Confirmation: Transactions greater than $500 will require live, verbal confirmation for new users. Refunds: Full refunds will be provided if a new customer reports fraud within 30 days. Warnings: Operators must provide clear warnings about the risk of fraud. Anti-Fraud Policy: Operators must develop a comprehensive anti-fraud policy and appoint a chief compliance officer. Registration and Disclosure: Operators must register with the Treasury Department and disclose ATM locations. Receipts: Operators must provide receipts with sufficient information to trace the transaction. In an email to CBS News Texas, crypto ATM operator Unbank stated that it already meets most of the proposed requirements and supports measures to enhance fraud prevention. However, the company added, "we strongly oppose provisions that limit financial access, create unnecessary regulatory choke points, and increase compliance burdens without clear fraud-reduction benefits." Other crypto ATM operators have expressed support for efforts to crack down on scams in letters to Congress, with some noting that their current safeguards already go above and beyond to protect consumers. CBS News Texas reached out to several operators for their thoughts on the new proposal.
Yahoo
25-02-2025
- Business
- Yahoo
To fight scams, Senate bill would limit transactions at crypto ATMs
Illinois Sen. Dick Durbin announced legislation Tuesday that would institute sweeping new regulations for the nation's crypto ATM industry. The machines have come under increasing scrutiny as the kiosks are used for scams where victims have lost thousands of dollars — in a single visit. The Crypto ATM Fraud Prevention Act would prevent new users from spending more than $2,000 in a day or $10,000 over a 14-day period to purchase cryptocurrency at a bitcoin ATM. The bill would also require companies to speak directly with new customers seeking to make transactions over $500 and mandate full refunds when those users file a police report and alert operators within 30 days of their transaction. 'As our technology has evolved and become more sophisticated, so have scammers,' Durbin, the top Democrat on the Senate Judiciary Committee, said in a statement. 'Nefarious actors are now using intimidation and manipulation to scare Americans, particularly seniors, into dumping their life savings into cryptocurrency ATMs.' The bill, he said, would 'help curb the efficacy of these scams.' At least $114 million in losses from scams involving bitcoin ATMs were reported to the Federal Trade Commission in 2023. Advocates and law enforcement say older adults are particularly vulnerable to such crimes. NBC News has previously reported on the scams, which advocates say have proliferated in the wake of regulatory gaps. Some victims have been falsely led to believe they were facing arrest or owed fines for missing jury duty. Eric Reisman, a 67-year-old retired special education teacher, said he fell for a jury duty scam in January. The Baltimore County resident said he lost $7,000 after paying the supposed fine by feeding bills into a bitcoin ATM. It's possible, he said, that there was a warning at the machine that he skipped past. 'I was hypnotized, that's the best I can say,' Reisman said. 'Why would I have spent four and half hours on this thing and not woken up?' Having an interaction with a customer service representative might have helped break the spell, he said. 'If somebody called me and said, 'Wait a second, what are you doing? Why are you putting in so much money, and do you have more money you're going to put in?' that would have saved me as well,' Reisman said. The Senate bill comes as the kiosks have become more accessible, popping up in gas stations and grocery stores in communities across the United States. Consumer watchdogs have pushed for federal oversight of the industry. At least three states — Minnesota, California and Vermont — already have daily transaction limits for bitcoin ATMs. The Senate bill says it will defer to state regulations, provided they are not in conflict or less stringent. In the fall, Durbin led an inquiry from a group of Democratic senators questioning how the country's 10 largest bitcoin ATM operators were protecting elderly users from scams. The companies said they required users to acknowledge warnings about potential fraud and most set daily transaction limits around $25,000. NBC News reached out to three crypto ATM operators — Bitcoin Depot, CoinFlip and Athena Bitcoin — for comment on Durbin's legislation. These companies operate the most bitcoin ATMs in the U.S., according to Coin ATM Radar, a website that tracks them. A spokesperson for CoinFlip said in a statement that the kiosks are used by thousands daily for 'legitimate transactions,' calling them 'critical' to the cryptocurrency sphere. 'We support legislation that includes strong and consistent protections for consumers, while preserving their right to access digital currencies, and we look forward to working with Sen. Durbin on this important issue,' the statement read. A spokesperson for Bitcoin Depot declined to comment. Athena Bitcoin did not immediately respond. When similar regulations have been debated at the state level, some companies have argued they might still be evaded if scammers simply directed victims to go to more than one site. If the bill passes, the Treasury Department could fine companies $10,000 for each day violations persist. Americans for Financial Reform is one of several watchdog groups that have endorsed the legislation. Mark Hays, its associate director for cryptocurrency and financial technology, says the legislation as a 'good first step' in tackling practices within the crypto industry that have allowed fraud to flourish. 'This bill won't solve all those problems,' he said, 'but it can help.' This article was originally published on
NBC News
25-02-2025
- Business
- NBC News
To fight scams, Senate bill would limit transactions at crypto ATMs
Illinois Sen. Dick Durbin announced legislation Tuesday that would institute sweeping new regulations for the nation's crypto ATM industry. The machines have come under increasing scrutiny as the kiosks are used for scams where victims have lost thousands of dollars — in a single visit. The Crypto ATM Fraud Prevention Act would prevent new users from spending more than $2,000 in a day or $10,000 over a 14-day period to purchase cryptocurrency at a bitcoin ATM. The bill would also require companies to speak directly with new customers seeking to make transactions over $500 and mandate full refunds when those users file a police report and alert operators within 30 days of their transaction. 'As our technology has evolved and become more sophisticated, so have scammers,' Durbin, the top Democrat on the Senate Judiciary Committee, said in a statement. 'Nefarious actors are now using intimidation and manipulation to scare Americans, particularly seniors, into dumping their life savings into cryptocurrency ATMs.' The bill, he said, would 'help curb the efficacy of these scams.' At least $114 million in losses from scams involving bitcoin ATMs were reported to the Federal Trade Commission in 2023. Advocates and law enforcement say older adults are particularly vulnerable to such crimes. NBC News has previously reported on the scams, which advocates say have proliferated in the wake of regulatory gaps. Some victims have been falsely led to believe they were facing arrest or owed fines for missing jury duty. Eric Reisman, a 67-year-old retired special education teacher, said he fell for a jury duty scam in January. The Baltimore County resident said he lost $7,000 after paying the supposed fine by feeding bills into a bitcoin ATM. It's possible, he said, that there was a warning at the machine that he skipped past. 'I was hypnotized, that's the best I can say,' Reisman said. 'Why would I have spent four and half hours on this thing and not woken up?' Having an interaction with a customer service representative might have helped break the spell, he said. 'If somebody called me and said, 'Wait a second, what are you doing? Why are you putting in so much money, and do you have more money you're going to put in?' that would have saved me as well,' Reisman said. The Senate bill comes as the kiosks have become more accessible, popping up in gas stations and grocery stores in communities across the United States. Consumer watchdogs have pushed for federal oversight of the industry. At least three states — Minnesota, California and Vermont — already have daily transaction limits for bitcoin ATMs. The Senate bill says it will defer to state regulations, provided they are not in conflict or less stringent. In the fall, Durbin led an inquiry from a group of Democratic senators questioning how the country's 10 largest bitcoin ATM operators were protecting elderly users from scams. The companies said they required users to acknowledge warnings about potential fraud and most set daily transaction limits around $25,000. NBC News reached out to three crypto ATM operators — Bitcoin Depot, CoinFlip and Athena Bitcoin — for comment on Durbin's legislation. These companies operate the most bitcoin ATMs in the U.S., according to Coin ATM Radar, a website that tracks them. A spokesperson for CoinFlip said in a statement that the kiosks are used by thousands daily for 'legitimate transactions,' calling them 'critical' to the cryptocurrency sphere. 'We support legislation that includes strong and consistent protections for consumers, while preserving their right to access digital currencies, and we look forward to working with Sen. Durbin on this important issue,' the statement read. A spokesperson for Bitcoin Depot declined to comment. Athena Bitcoin did not immediately respond. When similar regulations have been debated at the state level, some companies have argued they might still be evaded if scammers simply directed victims to go to more than one site. If the bill passes, the Treasury Department could fine companies $10,000 for each day violations persist. Americans for Financial Reform is one of several watchdog groups that have endorsed the legislation. Mark Hays, its associate director for cryptocurrency and financial technology, says the legislation as a 'good first step' in tackling practices within the crypto industry that have allowed fraud to flourish. 'This bill won't solve all those problems,' he said, 'but it can help.'
