Senator proposes limits on crypto ATM transactions to combat scams

The Senator of Illinois, Dick Durbin, has introduced new legislation aimed at reducing fraud on automatic distributors of cryptocurrency tickets, an increasing concern for the police.

The Crypto ATM Fraud Prevention Act would impose transaction limits and require additional consumer protections for Prevent scams who target the elderly disproportionately.

According to NBC NewsDurbin’s bill would be new $ 2,000 users in daily transactions and $ 10,000 over a period of 14 days. Automatic counters should also be communicated directly with new users who are trying transactions of more than $ 500 and provide complete reimbursements for fraud victims who submit police reports within 30 days.

Advanced scammers

The senator pointed out that the crooks exploit these machines by putting pressure on the victims by depositing large sums of money under false pretexts.

“As our technology has evolved and has become more sophisticated, the crooks too,” said Durbin. “Breeding players now use intimidation and manipulation to scare Americans, especially the elderly, in the spill of their savings in automatic distributors of cryptocurrency tickets.”

Cryptographic clods have expanded Quickly in recent years, appearing in service stations and grocery stores across the country. The organizations responsible for the application of laws have declared an increase in scams, the Federal Trade Commission noting $ 114 million in losses linked to the automatic cryptocurrency counters in only 2023.

Frauders often present themselves as government representatives or law enforcement agents, forcing victims to make payments to avoid fictitious fines or legal problems.

Durbin cited a case in which an owner of Springfield, in Illinois, deleted an automatic cryptocurrency counter after having witnessed several elderly customers placing large sums while speaking on their phone, apparently under constraint.

Similar concerns have prompted some statesIncluding Minnesota, California and Vermont, to implement daily transaction limits on automatic cryptocurrency tickets. The Durbin bill would allow the state regulations to remain in force until they are strict than federal rules.

The bill would also oblige operators in ATM to establish fraud prevention policies and submit them to the financial network of the application of crimes. Companies have found that the violation of the proposed regulations could incur fines of $ 10,000 per day.