Crypto ATM Frauds Targeting Elderly, Senate Demands Action
- Senate Democrats demand crypto ATM operators address fraud, as $65M was lost in 2023, mostly by elderly victims.
- Lawmakers request answers on scam prevention, limits, and fraud insurance from crypto ATM firms by October 4.
- Fraud losses from Bitcoin ATMs have surged, with elderly Americans three times more likely to be targeted than younger adults.
Crypto ATM Frauds Targeting Elderly: US Senate urges for Action
A group of U.S. Senate Democrats, led by Senate Majority Whip and Judiciary Committee Chair Dick Durbin, has called on ten of the largest crypto ATM operators in the country to step up efforts to protect elderly Americans from fraud. In a letter dated Sept. 11, seven senators, including Elizabeth Warren, urged companies like Bitcoin Depot, CoinFlip, RockItCoin, and others to take immediate measures to curb financial scams targeting seniors.
Fraud Reaches $65 Million in First Half of 2023
Citing data from the Federal Trade Commission (FTC), the senators highlighted that Bitcoin ATM (BTM)-related fraud losses hit $65 million in the first half of 2023. The letter pointed out that elderly Americans are more than three times as likely to fall victim to such scams compared to younger adults. The senators emphasized that BTM operators must take responsibility, as their machines are increasingly linked to financial crimes against older individuals.
Crypto ATM Frauds: Senators Call for Immediate Action from Operators
In the letter co-signed by Durbin, Warren, and other senators, the group called on companies to address the growing problem of fraud linked to Bitcoin ATMs. They noted cases like the one reported by the Illinois Times in July, where a business owner removed a Coinhub ATM because it was mostly used by scam victims. The senators also referenced a New York Times article outlining scams that coerced elderly Americans into sending money via crypto ATMs.
The Senate Democrats have asked the crypto ATM companies to provide answers by Oct. 4, detailing the steps they have taken to prevent fraud. These include whether they warn users about potential scams, set transaction or deposit limits, and if they offer fraud insurance.
Scam Warnings Rise Alongside Fraud Cases
Recent FTC reports indicate a sharp rise in crypto ATM scams, with losses skyrocketing from $12 million in 2020 to $144 million in 2023. Despite the alarming numbers, some operators like Bitcoin Depot claim to display scam warnings on their machines. However, calls for more proactive measures continue to grow.
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