Arizona lawmakers push bill to curb Bitcoin ATM fraud

A new Arizona bill aims to protect residents from Bitcoin ATM scams following a series of incidents, one of which a woman lost $ 17,000 because of fraudsters.

Bill 2387 of the Chamber, presented by the representative of the State, David Marshall, offers strict regulations on the atm operations of cryptocurrencies.

The legislation comes after Tamara, a social security recipient in Peoria, was the victim of crooks posing as representatives of Paypal.

According to a ABC The affiliate of the news, she was convinced to withdraw $ 7,000 from her current account and $ 10,000 from her individual retirement account (IRA), which she subsequently transferred using a bitcoin (BTC) ATM.

The crooks used pressure threats and tactics, saying that his accounts had been compromised and that transfers were necessary to protect his funds.

Arizona’s prosecutor General Kris Mayes told ABC15 that Bitcoin scams increased due to nature difficult to draw cryptocurrency. The proposed bill would implement several protection measures, in particular:

• A daily transaction limit of $ 1,000
• Compulsory license for state operators
• Reimbursement policy options required

The magnitude of the Atm fraud of the cryptocurrency has cultivated substantial in recent years. The FBI cryptocurrency fraud report in 2023 revealed that Arizona residents had lost around $ 127 million for virtual currency fraud, the elderly, more than 60, being particularly vulnerable.

Federal Trade Commission data show Bitcoin (BTC)) ATM fraud increased from $ 12 million in 2020 to $ 112 million in 2023.

The case of Tamara is an example of common tactics used by crooks, who often create urgency and fear to prevail over the suspicions of the victims.

“My Spidey senses were triggering, but it was as if he had said he was not going to put the money again unless you finish this task and that it was like a threat,” it She explained to ABC15.

The proposed legislation shows Arizona’s efforts to combat this growing threat through increased regulation of Cryptocurrencies ATM operations, aimed at protecting vulnerable residents from similar programs.

The number of Bitcoin ATM global grow 6% in 2024, reflecting the growing increasing adoption of cryptocurrency.

These machines operate as automatic dispensers of traditional tickets but allow users to buy and sometimes sell bitcoin and other cryptocurrencies using cash cards or bank cards, although sales costs tend to be higher.

The first ATM Bitcoin was introduced to Vancouver in 2013, and their presence has since extended to more than 37,500 machines in more than 70 countries.

Recent data From Finbold, citing Coin Atm Radar, confirms this continuous growth trend.