In Senate Floor Speech, Durbin Announces Introduction Of Crypto ATM Fraud Prevention Act To Crack Down On Crypto Scams That Prey On Seniors

WASHINGTON – Today, in a speech on the Senate floor, U.S. Senate Democratic Whip Dick Durbin (D-IL), Ranking Member of the Senate Judiciary Committee, announced the introduction of the Crypto ATM Fraud Prevention Act to help prevent scammers from stealing Americans’ savings through cryptocurrency schemes.  Each year, Americans, especially seniors, lose tens of millions of dollars to scams involving cryptocurrency ATMs.  The largely unregulated nature of these machines, coupled with the anonymity and irreversibility of cryptocurrency transactions, make crypto ATMs a favorite tool forscammers.  Durbin’s legislation aims to crack down on crypto scams by adding layers of protections to crypto ATM transactions and requiring greater transparency from cryptocurrency ATM operators.

“There are now more than 30,000 cryptocurrency ATMs in this country.  And they are being used by criminals to cheat Americans out of their hard-earned savings to the tune of $114 million in 2023 alone.  Most of the victims are senior citizens,” Durbin said.

“It’s past time that we put some common-sense guardrails in place to stop fraud in this largely unregulated industry.  That’s why today, I am… [introducing] the Crypto ATM Fraud Prevention Act.  This bill will require crypto ATM operators to warn consumers about scams and take reasonable steps to prevent fraud at their machines.  It will also put in place measures to limit the amount that consumers lose when they do fall victim to scams and will give law enforcement new tools to track down and fight back against criminals,” Durbin continued.

Often, crypto scammers will contact elderly Americans, and using threats, intimidation, and fabricated backstories, will coerce them into depositing large sums of money into the criminals’ crypto wallets via cryptocurrency ATMs.  According to data recently released by the Federal Trade Commission (FTC), the amount consumers reported losing in this form of fraud increased nearly tenfold between 2020 and 2023—from $12 million to $114 million.  In 2023, the FBI’s Internet Crime Complaint Center received nearly 2,700 crypto ATM fraud complaints from individuals aged 60 and older—more than all other age groups combined.

Durbin went on to share the story of an Illinois constituent from New Lenox, who was scammed out of $15,000.

“I’d like to tell you about one of my constituents – a man from New Lenox, Illinois, that’s in the suburbs of Chicago.  Late last year, he received an urgent phone call from someone claiming to be a deputy in the Will County Sheriff’s Office.  This self-proclaimed deputy informed my constituent that he had missed jury duty.  As a result, the deputy said, there was a warrant out for his arrest… ‘Don’t worry,’ the deputy further explained.  The man could avoid arrest and put the whole matter behind him.  All he had to do was pay the fine,” Durbin said. 

“But he couldn’t pay by check or credit card.  The deputy directed the man to a local cryptocurrency ATM and told him to deposit $15,000 into the machine, pay the fine, and all would be forgiven.  If you’ve been following the news, you might have guessed by now that the man on the phone wasn’t a sheriff’s deputy at all.  He was a scammer.  And once my constituent deposited his money into the crypto ATM, it was gone.  There was no way to trace the transaction to the scammer, and no way to get the money back,” Durbin said.

Video of Durbin’s remarks on the floor is available here.

Audio of Durbin’s remarks on the floor is available here.

Footage of Durbin’s remarks on the floor is available here for TV Stations.

The Crypto ATM Fraud Prevention Act was designed to help prevent scams such as the one that Durbin’s constituent was tricked with.  Specifically, the Crypto ATM Fraud Prevention Act will:

• Require warnings about the risk of fraud: This bill would require cryptocurrency ATM operators to provide clear warnings to consumers about the risk of fraud, including warnings of common types of scams and that consumers should never send money to someone they have never met.

• Require operators to develop an anti-fraud policy: Cryptocurrency ATM operators would be required to appoint a chief compliance officer and develop a comprehensive anti-fraud policy, which must be submitted to the Financial Crimes Enforcement Network.  Operators also would be required to provide live customer support during all operating hours.

• Protect new customers—who are most likely to be victims of fraud: New customers, defined as a customer within 14 days of their first transaction, would be protected by the following provisions:
  • Transaction limits of $2,000 per day, and $10,000 total over the first 14 days.
  • Full refunds for fraudulent transactions if the customer makes a report within 30 days.
  • Requiring live, verbal confirmation for any transaction greater than $500.

• Require crypto ATM operators to register and disclose ATM locations: Cryptocurrency ATM operators would be required to register with the Treasury Department and to disclose and regularly update the locations of all their ATMs.  Operators also would be required to provide a point of contact to relevant regulators and law enforcement agencies.

• Require receipts and information sufficient to trace the transaction: Operators would be required to provide receipts for each transaction, including information sufficient to trace the transaction, such as the time, place, and amount of the transaction, and a transaction hash.  Receipts also would have to include contact information for relevant law enforcement and a link to the operator’s refund policy.

Today’s legislation builds upon Durbin’s efforts to crack down on crypto scams.  In September 2024, Durbin led a group of Senate Democrats in pressing the ten largest Bitcoin ATM operators to curb fraud against elderly Americans.  The Senators wanted to understand what steps—if any—these companies were taking to prevent fraudulent use of their machines.

Durbin has also spoken on the Senate floor about the prevalence of crypto scammers preying on senior Americans.

Joining the bill’s introduction as cosponsors are U.S. Senators Richard Blumenthal (D-CT), Jack Reed (D-RI), and Peter Welch (D-VT).

The bill has earned the endorsement of Americans for Financial Reform, National Consumers League, Public Citizen, Better Markets, and the National Consumer Law Center on behalf of its low-income clients.

Text of the bill is available here.

A one-pager on the bill is available here.

A section-by-section of the bill is available here.

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