Illinois Senator Introduces Cryptocurrency ATM Regulation Bill, Requires Transaction Limits and Refund Protections

BlockBeats News, February 26th, according to Decrypt, Illinois Senator Dick Durbin introduced the "Cryptocurrency ATM Fraud Prevention Act," aimed at curbing the growing fraud associated with cryptocurrency ATMs. The bill will impose strict transaction limits on new users, prohibiting them from spending more than $2,000 per day or $10,000 within 14 days, and requiring operators to directly contact users attempting transactions over $500 to ensure they are not being manipulated by fraudsters.

The bill also stipulates that if a victim reports fraud within 30 days of the transaction, companies must provide a full refund. Senator Durbin shared a case in the proposal where a man from Illinois was scammed out of $15,000. The man received a scam call from someone claiming to be a deputy sheriff, stating he had missed jury duty and could avoid arrest by paying a fine via a Bitcoin ATM.

Data from the Federal Trade Commission (FTC) shows that consumer-reported losses due to Bitcoin ATM fraud have increased nearly tenfold since 2020, surpassing $1.1 billion in 2023 alone. People over 60 are more than three times as likely to be scammed compared to younger individuals.