Lawmakers Call on Top 10 Bitcoin ATM Firms to Address Crypto Fraud Concerns

Seven Senate Democrats have called on the 10 largest bitcoin ATM operators in the U.S. to address growing crypto fraud that targets elderly Americans. The lawmakers explained that scammers are reportedly exploiting the anonymity of cryptocurrency transactions to steal from seniors through bitcoin ATMs. The senators urged companies to implement stronger measures to combat the rise in crypto fraud.

Senators Call for Bitcoin ATM Operators to Combat Crypto Fraud Targeting Seniors

Seven Senate Democrats sent a letter to the 10 largest bitcoin ATM operators in the U.S. on Friday, urging them to address increasing crypto fraud targeting elderly Americans.

The letter was signed by U.S. Senators Richard J. Durbin (D-IL), Richard Blumenthal (D-CT), Elizabeth Warren (D-MA), Tina Smith (D-MN), Sheldon Whitehouse (D-RI), Peter Welch (D-VT), and Jack Reed (D-RI). It was sent to Athena Bitcoin, Bitcoin Depot, Bitstop, Byte Federal, Cash2bitcoin, Coinflip, Coinhub, Margo, Rockitcoin, and Unbank. The letter states:

We write to call on you to take immediate action to address troubling reports that your bitcoin ATMs (BTMs) are contributing to widespread financial fraud against elderly Americans.

The lawmakers claimed that cryptocurrencies like bitcoin “have long been associated with criminal activity” and that the “relative anonymity and irreversibility of cryptocurrency transactions has made them particularly attractive to fraudsters.”

They also stated that “as companies like yours have staged BTMs in a variety of businesses — sometimes even paying businesses to host your BTMs — there has been a marked increase in bitcoin scams impacting elderly Americans.”

The Federal Bureau of Investigation (FBI) and Federal Trade Commission (FTC) data were cited. Between 2020 and 2023, reported losses from BTM scams surged from $12 million to $114 million. Elderly individuals are “more than three times as likely to report a loss using a BTM than younger adults,” they added.

The senators demanded that the companies take stronger steps to prevent fraud and ensure their crypto ATMs are not misused. They requested responses from the companies by Oct. 4, asking for details on the measures currently in place.

What do you think about Senate Democrats writing to bitcoin ATM operators, asking them to address increasing fraud targeting American seniors? Let us know in the comments section below.

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