Imagine this: You walk into a gas station, and there's a shiny new machine promising quick crypto buys. Sounds convenient, right? Well, think again. These crypto ATMs have become hotspots for scams, with victims losing thousands in a single visit. The problem is so bad that Illinois Sen. Dick Durbin has proposed a new bill to put some serious limits on these machines.

        The Crypto ATM Fraud Prevention Act is all about keeping your money safe. If it passes, new users won't be able to spend more than $2, 000 in a day or $10, 000 over 14 days. Plus, any transaction over $500 will require a chat with a company rep. And if you realize you've been scammed? You'll get a full refund if you report it to the police and alert the operators within 30 days.

        Why the tough talk? Because scammers are getting smarter. They're using fear and manipulation to trick people, especially seniors, into pouring their life savings into these machines. In 2023 alone, at least $114 million was lost to these scams, according to the Federal Trade Commission. It's a big problem, and it's only getting worse.

        Take Eric Reisman, for example. This 67-year-old retired teacher lost $7, 000 to a jury duty scam. He was told he owed a fine and had to pay up at a bitcoin ATM. He admits he might have skipped a warning, but having someone check in on him could have saved the day.

        These machines are everywhere now—gas stations, grocery stores, you name it. And while some states have already set daily transaction limits, federal oversight is still a big question mark. Durbin's bill aims to change that, but it's not without its critics. Some companies argue that strict regulations might just push scammers to find new ways to trick victims.

        The Treasury Department could fine companies $10, 000 for each day they violate the rules if the bill passes. But will it be enough? Mark Hays, from Americans for Financial Reform, thinks it's a good start. "This bill won't solve all those problems, " he says, "but it can help. "

        So, what can you do to stay safe? Be cautious, ask questions, and remember: if it sounds too good to be true, it probably is. And if you ever find yourself in a sticky situation, don't hesitate to reach out for help. Your money—and your peace of mind—are worth it.

Crypto ATMs: The New Scam Hotspots

Actions