US Lawmakers Urge Crypto ATM Operators to Combat Fraud

A group of United States Senators has sent letters to ten of the country’s largest Crypto ATM operators, urging them to take immediate action to address widespread fraud targeting elderly Americans. The Senators cited data from the Federal Trade Commission (FTC) which revealed a tenfold increase in Bitcoin ATM scams since 2020.

The Senators expressed particular concern about the disproportionate impact of these scams on older adults. According to the FTC, individuals aged 60 and older are three times more likely to report losses from Bitcoin ATM scams compared to younger adults.

The letters highlight numerous instances of scammers coercing elderly Americans into sending funds through Bitcoin ATMs. Some reports include a business owner removing a Coinhub ATM after it was identified as a hub for scam activity and a New York Times article detailing egregious examples of elderly victims falling prey to these scams.

The Senators have asked the Bitcoin ATM operators to provide detailed information about their measures to combat fraud. They have requested answers to specific questions such as:

• Whether the companies warn customers about potential scams
• If they have transaction and deposit limits in place
• If they offer insurance protection to depositors against fraud

While some Bitcoin ATM operators have responded to the concerns, others have yet to provide detailed information. Bitcoin Depot, for example, has stated that it posts scam warnings on its machines and has implemented screen prompts to alert customers to potential risks.

The FTC’s report and the Senators’ letters underscore the growing concern about the use of Bitcoin ATMs for fraudulent activities. The increasing number of scams targeting elderly individuals highlights the need for stronger measures to protect consumers.

The cryptocurrency industry must take proactive steps to address the issue of fraud associated with Bitcoin ATMs. By implementing robust security measures and educating users about potential scams, operators can help protect consumers and maintain the integrity of the industry.