U.S. lawmakers introduce the Crypto ATM Fraud Prevention Act to fight rising scams. The invoice mandates fraud warnings, transaction limits, and refunds for victims whereas holding crypto ATM operators accountable.
New Invoice Proposes Fraud Warnings, Transaction Limits, and Refunds for Victims
U.S. lawmakers have launched the Crypto ATM Fraud Prevention Act to fight the rising variety of cryptocurrency kiosk scams which have disproportionately affected older Individuals. The invoice, introduced on February 26, 2025, proposes new shopper safety measures, together with fraud warnings, transaction limits, and obligatory refunds for rip-off victims.
Stronger Oversight for Crypto Kiosks
The laws, launched by Senator Jack Reed (D-RI) and co-sponsored by Senators Dick Durbin (D-IL), Richard Blumenthal (D-CT), and Peter Welch (D-VT), seeks to manage cryptocurrency ATMs by requiring operators to:
- Implement complete anti-fraud insurance policies and submit them to the Monetary Crimes Enforcement Community (FinCEN)
- Appoint a chief compliance officer to supervise fraud prevention
- Register with the U.S. Treasury Division and disclose ATM places
Senator Reed emphasised the necessity for stricter oversight, stating that crypto kiosks have develop into “fee portals for scammers.” He known as on ATM operators to take duty for guaranteeing their machines aren’t used to take advantage of weak people or facilitate cash laundering.
Shopper Safety Measures
- To stop fraud, the invoice introduces particular protections for first-time customers:
- Transaction limits of $2,000 per day and $10,000 over the primary 14 days
- Obligatory refunds for fraudulent transactions reported inside 30 days
- Stay, verbal affirmation for transactions exceeding $500
These measures intention to cut back fraud dangers, shield new customers, and enhance accountability amongst crypto ATM operators.
Rising Considerations Over Crypto ATM Scams
The laws follows a pointy rise in fraud linked to cryptocurrency ATMs. In keeping with the Federal Commerce Fee (FTC), reported losses from these scams elevated from $12 million in 2020 to $114 million in 2023, with a further $65 million misplaced within the first half of 2024. The FBI’s Web Crime Criticism Middle additionally reported practically 2,700 fraud circumstances involving victims aged 60 and older final yr.
Assist from Shopper Advocacy Teams
The invoice has gained backing from organizations such because the Nationwide Customers League, Public Citizen, and Individuals for Monetary Reform, all of which assist stronger rules to guard customers from crypto-related fraud.
“It is a constructive first step in direction of stopping the surge in crypto kiosk scams and cracking down on criminals,” stated Senator Durbin. “We should additionally proceed educating weak populations, particularly older Individuals, about the best way to acknowledge and keep away from crypto scams.”
Steps to Curb the Scams
The proposed laws would set up a federal customary to switch the present state-by-state rules, whereas permitting states to impose stricter guidelines if wanted. If handed, the invoice might considerably affect the crypto ATM trade, requiring operators to strengthen safety and transparency.
As lawmakers push for elevated oversight, the way forward for crypto ATM regulation stays a key subject within the battle in opposition to digital asset fraud.
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