A group of Democratic Senators is asking the biggest Bitcoin ATM owners in the US to immediately do something about the rising scams that is hurting older people more than younger people. The Senators, led by Dick Durbin, Senate Majority Whip and Chair of the Judiciary Committee, were worried about how people, especially older Americans, were losing more and more money at Bitcoin ATMs.
Fraud losses from Bitcoin ATMs hit $65 million in the first half of 2023, according to a statement released on September 12 by seven senators, including Elizabeth Warren. The data came from the Federal Trade Commission (FTC). The senators say that older Americans, especially those over 60, are more than three times more likely than younger people to report scams involving Bitcoin ATMs.
The letters, dated September 11, were sent to the CEOs of ten big Bitcoin ATM operators. These companies are Bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena Bitcoin, Byte Federal, Cash2Bitcoin, and Margo. The politicians told these companies that they needed to act right away to fix the problem, pointing out that the installation of Bitcoin ATMs in different places has happened at the same time as an increase in scams aimed at seniors.
Senators talked about news stories, such as one from the Illinois Times, about a business owner who took down a Coinhub ATM because many of its users had been scammed. They also talked about a story in the New York Times that described how scammers forced old people to send money through Bitcoin ATMs.
In their notes, the senators asked the companies to get back to them by October 4 with details about what they are doing to stop scams. Some of the questions ask if the companies warn customers about possible scams, set limits on transactions and deposits, and provide insurance to protect customers from theft.
It’s scary that theft at Bitcoin ATMs is on the rise. The FTC said earlier this month that these kinds of scams have become ten times more common since 2020, with losses going from $12 million to $144 million. The FBI also said that theft involving cryptocurrencies rose by 45% to $5.6 billion in 2023.
As Bitcoin ATMs become more popular, lawmakers are asking for better protections to stop fraud, especially against seniors who are more likely to be scammed.
