Senator Durbin Introduces Bill to Combat Crypto ATM Fraud in the US

Senator Durbin Introduces Bill to Combat Crypto ATM Fraud in the US

Senator Dick Durbin of Illinois, a Democrat and former chair of the Senate Judiciary Committee, has introduced new legislation aimed at curbing fraud at cryptocurrency ATMs across the United States.

Speaking on the Senate floor on February 25, Durbin shared the story of a constituent who was scammed by a fraudster impersonating law enforcement. The scammer falsely claimed that an arrest warrant had been issued against the individual and that he could avoid jail time by depositing $15,000 at a crypto ATM.

Highlighting what he called an “alarming trend” of fraud linked to the more than 30,000 crypto ATMs operating in the U.S., Durbin introduced the Crypto ATM Fraud Prevention Act. The proposed bill seeks to establish stronger consumer protections, particularly for senior citizens, by implementing safeguards against fraudulent activities at these machines.

“This bill will require crypto ATM operators to warn consumers about scams and take reasonable steps to prevent fraud at their machines,” Durbin stated. “It will also put in place measures to limit the amount consumers lose when they do fall victim to scams, and give law enforcement new tools to track down and fight back against criminals.”

The scam described by Durbin mirrors long-standing fraud tactics where criminals contact victims—often by phone—and threaten them with fabricated legal consequences unless they make payments, historically via gift cards. The FBI reported that Americans lost over $5 billion to cryptocurrency-related fraud in 2023, with senior citizens being a primary target.

Under Durbin’s proposal, first-time crypto ATM users would receive special protections for two weeks following their initial transaction. Additionally, the bill would impose daily and total deposit limits—$2,000 per day and $10,000 in total—for individual customers. Any new user attempting to deposit more than $500 would need to provide verbal confirmation of the transaction. In certain cases, crypto ATM operators would also be required to issue full refunds to fraud victims.

At the time of publication, representatives from major crypto ATM companies, including CoinFlip and Bitcoin Depot, had not responded to requests for comment.

Durbin’s bill is one of the first crypto-related legislative proposals introduced in the 119th Congress, arriving amid ongoing debates over stablecoin regulations in both the House and Senate. However, given the Republican majority in Congress and the leadership of President Donald Trump, the bill’s chances of passing remain uncertain.