Senator Dick Durbin Introduces Legislation to Stop Fraud at Crypto ATMs

Jakarta, Pintu News – Senator Dick Durbin of Illinois, who previously served as Chairman of the Senate Judiciary Committee, recently introduced a bill to reduce fraud at crypto ATMs in the United States. On February 25, during a speech on the Senate floor, Durbin told the story of a constituent who fell victim to fraud.

The fraudster claimed that authorities had issued an arrest warrant and said that he could “pay the fine” through a $15,000 deposit at a crypto ATM to avoid jail. This case illustrates an increasingly alarming trend of fraud at the more than 30,000 crypto ATM machines spread across the US.

Legislation to Prevent Fraud at Crypto ATMs

Senator Durbin proposed the Crypto ATM Fraud Prevention Act, a piece of legislation that aims to provide tighter safeguards against scams that many target senior citizens. According to him, this legislation would require crypto ATM operators to warn consumers of potential fraud and take reasonable steps to prevent it. “This legislation would limit the amount consumers can lose when they fall victim to fraud, giving law enforcement new tools to track and fight criminals,” Durbin said.

In addition, the bill also proposes special protection for new users of crypto ATMs with a two-week protection period after the first transaction. During this period, new users’ deposits will be limited to a maximum of $2,000 (IDR 32,660,000) per day or $10,000 (IDR 163,300,000) in total, and any deposits over $500 (IDR 8,165,000) must be confirmed verbally.

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Impact of Fraud and Financial Loss

This crypto ATM scam is a variation of a type of fraud that has long been used by criminals. Typically, perpetrators target individuals with false threats of legal consequences, forcing victims to purchase gift cards and submit redemption codes. In 2023, the FBI noted that Americans lost more than $5 billion to crypto fraud, with many victims being elderly.

With this legislation in place, Senator Durbin hopes to provide more effective measures to prevent further losses and introduce greater liability for crypto ATM operators. In support of this policy, crypto ATM operators such as CoinFlip and Bitcoin Depot are expected to provide full refunds to fraud victims under certain conditions, although there has been no official response from them at the time of publishing this article.

Legislative Hopes and Challenges

Senator Durbin’s legislation is one of the first proposals focused on crypto regulation in the 119th session of Congress, following several stablecoin-related proposals in the House and Senate. However, it remains unclear whether this legislation, backed by the Democratic Party, will gain enough support to pass in the Republican-controlled Congress and be signed into law by President Donald Trump.

This legislation is potentially an important step in creating better regulation to tackle fraud in the growing crypto industry, as well as protecting consumers, especially those vulnerable to fraud.

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Reference:

• Cointelegraph. Senator Dick Durbin Legislation Aims to Stop Crypto ATM Fraud. Accessed February 26, 2025.
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