Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
A coalition of U.S. Senate Democrats, spearheaded by Majority Whip and Senate Judiciary Committee Chair Dick Durbin, is calling on major cryptocurrency ATM operators to take prompt measures against the increasing fraud targeting senior citizens.
On September 12, seven Democratic senators, including Elizabeth Warren, released a statement urging 10 of the largest crypto ATM companies in the nation to tackle the escalating financial losses associated with Bitcoin ATMs (BTMs).
Data from the Federal Trade Commission (FTC) indicates that fraud related to these machines reached $65 million in the first half of 2023.
Older Americans More Susceptible to ATM Scams
The senators expressed significant concern for older Americans, highlighting that individuals aged 60 and above are over three times more likely to become victims of BTM-related scams compared to younger individuals.
The letters were directed to the CEOs and senior executives of Bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena Bitcoin, Byte Federal, Cash2Bitcoin, and Margo.
Durbin, Warren, and their fellow senators Richard Blumenthal, Jack Reed, Tina Smith, Peter Welch, and Sheldon Whitehouse, urged these companies to “take immediate action” to mitigate fraud schemes that disproportionately impact seniors.
They emphasized the responsibility these firms have taken by placing BTMs in various locations, often compensating businesses to host the machines.
Criminals are reaching out, threatening, and coercing elderly Americans into depositing significant amounts of money into criminals’ crypto wallets via Bitcoin ATMs.
We’re informing those companies: it’s time to put an end to this. pic.twitter.com/Hbc7MzINkR— Senator Dick Durbin (@SenatorDurbin) September 12, 2024
The lawmakers noted that this has resulted in a rise in scams targeting elderly Americans.
Referring to a July report by the Illinois Times, the senators mentioned a business owner who removed a Coinhub ATM after discovering that most users were victims of scams.
Related Posts
They also cited a New York Times article that detailed several instances of scammers pressuring older adults into transferring money through crypto ATMs.
The senators requested that the companies reply by October 4, outlining the measures they are implementing to prevent fraud.
Among the primary inquiries were whether the firms provide scam alerts, enforce transaction and deposit limits, and offer fraud insurance for depositors.
Crypto ATM Fraud Increases Tenfold Since 2020
The FTC reported that crypto ATM fraud has increased tenfold since 2020, rising from $12 million to $144 million.
The FBI also indicated that $5.6 billion was lost to crypto fraud in 2023, marking a 45% rise from the previous year.
As reported, scammers are increasingly utilizing crypto ATMs and kiosks in their fraudulent activities, taking advantage of these digital currency exchange points to deceive unsuspecting victims.
The rise in crypto ATM fraud coincides with the growing popularity of these machines.
Recently, it was disclosed that the number of crypto ATMs in Australia has surged from just 73 to nearly 1,200 within two years.
Meanwhile, the United States continues to lead the market with approximately 32,000 machines, followed by Canada with around 3,000.
The post Lawmakers Call on Crypto ATM Operators to Combat Fraud as Losses Mount to $65M appeared first on Cryptonews.
