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16/09/24
10
Senators Urge Action to Combat Cryptocurrency ATM Fraud Targeting Seniors
A coalition of Democratic Senators is calling on major cryptocurrency ATM operators in the United States to take decisive action against fraud, particularly in protecting older Americans. Led by Senate Majority Whip Dick Durbin, the group expressed concern over a sharp rise in fraud associated with Bitcoin ATMs, citing a troubling $65 million in reported losses in just the first half of this year, according to data from the Federal Trade Commission (FTC).
The urgency of this matter is highlighted by statistics indicating that individuals aged 60 and above are more than three times as likely to experience losses through these ATMs compared to younger users. In a series of letters addressed to the CEOs of leading Bitcoin ATM companies — including Bitcoin Depot, CoinFlip, and RockItCoin — the Senators urged immediate measures to counteract the growing financial fraud targeting the elderly.
The correspondence noted that as these ATM operators expand their networks in various businesses, often incentivizing these businesses to host their machines, there has been a significant uptick in scams impacting older individuals. Reports from local news outlets have shed light on these concerns, highlighting instances of businesses removing ATMs due to their association with fraudulent activities, as well as revealing disturbing patterns in which scammers manipulate elderly citizens into sending money through cryptocurrency ATMs.
The senators requested detailed responses by October 4 from these firms concerning their strategies for combating fraud. The inquiries focus on whether companies provide warnings about potential scams, implement transaction and deposit limits, and offer insurance protection for depositors against fraud.
Recent FTC data has indicated that cryptocurrency ATM scams have surged dramatically, escalating from $12 million in 2020 to $144 million today. Additionally, the FBI reported a staggering $5.6 billion in crypto-related fraud losses for 2023, emphasizing an alarming trend that warrants immediate action from industry leaders.
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