US Senators urge Bitcoin ATM firms to address $65M fraud impact

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Grafa2024/09/16 07:25

By:Mahathir Bayena

Seven Democratic U.S. Senators, led by Majority Whip Dick Durbin, have called on ten major crypto ATM operators to take immediate steps to curb fraud targeting elderly Americans.

In a statement released on September 12, the Senators, including Elizabeth Warren, cited Federal Trade Commission (FTC) data showing that fraud losses from Bitcoin (CRYPTO:BTC) ATMs reached $65 million in the first half of 2024.

The letters, dated September 11, were addressed to the CEOs or top executives of the nation's leading Bitcoin ATM (BTMs) operators, such as Bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena Bitcoin, Byte Federal, Cash2Bitcoin, and Margo.

The Senators expressed concern that these machines were facilitating “widespread financial fraud against elderly Americans.”

They pointed out that those aged 60 and older are more than three times as likely to report losses involving BTMs compared to younger adults.

"As companies like yours have staged BTMs in a variety of businesses—sometimes even paying businesses to host your BTMs—there has been a marked increase in Bitcoin scams impacting elderly Americans," the Senators wrote.

They also referenced reports from the Illinois Times and the New York Times, which highlighted cases where businesses removed crypto ATMs because they were primarily used by scam victims.

The Senators have requested these companies to provide responses by October 4 on the measures they are taking to prevent fraud, such as scam warnings on machines, transaction and deposit limits, and insurance against fraud.

The FTC reported a tenfold rise in crypto ATM fraud since 2020, from $12 million to $144 million, while the FBI noted a 45% increase in crypto fraud losses in 2023, totaling $5.6 billion.

According to the FTC, the median loss due to BTM fraud was $10,000 in the first half of 2024, with older adults suffering significant losses.

In response, a Bitcoin Depot spokesperson stated that their machines display warnings to alert customers about potential scams.

At the time of reporting, the Bitcoin (BTC) price was $58,810.07.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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