BTM Fraud On The Rise, Scammers Targeting Elderly Americans – US Senators

U.S. Senate Majority Whip Dick Durbin and six other Senate Democrats expressed concerns over Bitcoin ATMs (BTMs) last Thursday, noting that these may be enabling BTM fraud against elderly Americans.

Durbin and Senators Richard Blumenthal, Jack Reed, Tina Smith, Elizabeth Warren, Peter Welch, and Sheldon Whitehouse sent a letter to the nation’s largest BTM operators, urging them to address the rising number of scams. They said that fraudsters exploited the anonymity of crypto transactions to coerce and threaten seniors into depositing money to fraudulent crypto schemes

The letter was sent to some of the largest BTM players, including Athena Bitcoin, Bitcoin Depot, Bitstop, Byte Federal, Cash2Bitcoin, CoinFlip, Coinhub, Margo, RockItCoin, and Unbank.

“Cryptocurrencies, including Bitcoin, have long been associated with criminal activity. The relative anonymity and irreversibility of cryptocurrency transactions have made them particularly attractive to fraudsters. 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 letter said.

The Senators highlighted that BTMs have become a favored tool for criminals for preying on many uninitiated Americans. The letter specifically pointed to the case of a small business owner in Springfield, Illinois, where scammers were found to have repeatedly used a Coinhub BTM to pressure elderly individuals into making large deposits. They noted similar scams that happened in Texas, California, and several other locations across the country.

BTM Fraud On The Rise

Cases of BTM fraud rose dramatically from $12 million in 2020 to $114 million in 2023, according to the Federal Trade Commission (FTC). In a post on X, social media influencer Mario Nawfal’s Roundtable (@RoundtableSpace) warned that tightening regulations are on the way.

SENATORS CRANK UP PRESSURE ON CRYPTO ATMS OVER FRAUD

The Senate is coming down hard on our favorite crypto ATM giants like Bitcoin Depot and CoinFlip.

Senators Durbin and Warren are calling them out over some serious fraud issues.

On September 11, they dropped a warning shot… pic.twitter.com/np140L458a
— Mario Nawfal’s Roundtable (@RoundtableSpace) September 16, 2024

The Shib Daily reported last week that Americans had lost up to $5.6 billion in fraud in 2023. The same also happens elsewhere in the world. Also last week, the UK’s Financial Conduct Authority (FCA) charged a 45-year-old man for running multiple crypto ATMs without a valid FCA registration.

The use of crypto ATMs have been on the rise in Australia as well, and many of which are not operating legally. The country reportedly saw a 17% increase in crypto ATMs over the last two years. Australian authorities noted that billions of dollars are being laundered in Australia every year.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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