Congress Urges crypto ATM Operators to Combat Fraud Against Elderly Americans
A group of U.S. Senate Democrats, led by Majority Whip and Senate Judiciary Committee Chair Dick Durbin, has recently called on major cryptocurrency ATM operators to take decisive action against the increasing fraud targeting elderly Americans.
On September 12, seven Democratic senators, including Elizabeth Warren, issued a statement urging the ten largest bitcoin ATM operators in the country to address the soaring financial losses stemming from bitcoin ATMs (BTMs).
According to data from the Federal Trade Commission (FTC), fraud associated with these machines has reached a staggering $65 million in the first half of 2023.
Older Americans more Vulnerable to ATM Scams
The senators are particularly concerned about older Americans, highlighting that individuals aged 60 and above are more than three times as likely to fall prey to BTM-related scams compared to younger adults.
The letters were directed to the CEOs and top executives of prominent BTM operators, including bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena bitcoin, Byte Federal, Cash2Bitcoin, and Margo.
Durbin, Warren, and other senators emphasized the urgent need for these firms to act promptly in curbing fraud schemes that disproportionately impact seniors.
They emphasized the significant role played by these companies in installing BTMs at various locations, often compensating businesses for hosting these machines.
As highlighted in a July report by the Illinois Times, business owners have noticed an increase in scams targeting elderly individuals, prompting them to remove certain BTMs to prevent further victimization.
The lawmakers also referenced a New York Times article detailing instances where scammers coerced older adults into transferring funds through crypto ATMs.
The senators have set a deadline of October 4 for the companies to respond, outlining the measures they are implementing to prevent fraud.
Key questions posed include whether these firms issue scam warnings, enforce transaction and deposit limits, and provide fraud insurance for depositors.
crypto ATM Fraud Rises Significantly Since 2020
According to the FTC, crypto ATM fraud has witnessed a drastic tenfold surge since 2020, escalating from $12 million to $144 million.
The FBI reported a substantial $5.6 billion loss to crypto fraud in 2023, marking a 45% increase from the previous year.
Scammers are increasingly incorporating crypto ATMs and kiosks into their fraudulent activities, exploiting these digital currency exchange points to deceive unsuspecting victims.
This surge in crypto ATM fraud aligns with the growing popularity of these machines. Recent reports reveal a significant increase in the number of crypto ATMs across various countries.
Australia, for instance, has experienced a substantial rise in crypto ATM numbers, surging from 73 to nearly 1,200 in just two years. The United States remains the largest market with approximately 32,000 machines, followed by Canada with around 3,000.
