Seven Democratic US Senators have urged ten major Bitcoin ATM operators to address concerns over fraud targeting elderly Americans. The call to action, led by Senate Majority Whip and Judiciary Committee Chair Dick Durbin, was made in letters sent on September 11.
The Senators, including Elizabeth Warren, Richard Blumenthal, Jack Reed, Tina Smith, Peter Welch, and Sheldon Whitehouse, highlighted a troubling trend: fraud losses from Bitcoin ATMs (BTMs) have soared to $65 million in the first half of this year alone, according to data from the Federal Trade Commission (FTC). They noted that individuals aged 60 and older are more than three times as likely to fall victim to such fraud compared to younger adults.
The letters were addressed to the CEOs and top executives of Bitcoin Depot, CoinFlip, RockItCoin, Bitstop, Coinhub, Unbank, Athena Bitcoin, Byte Federal, Cash2Bitcoin, and Margo. The Senators called on these companies to “take immediate action” to combat the widespread financial fraud affecting elderly Americans.
The Senators criticized the practices of placing BTMs in various businesses, sometimes even paying for the placement, which they argue has contributed to an increase in Bitcoin scams targeting seniors. They referenced a July report from Illinois Times about a business owner removing a Coinhub ATM after finding it was predominantly used by scam victims. Additionally, a New York Times report described “egregious examples” of scammers coercing elderly individuals into sending funds via crypto ATMs.
The letters request responses to several questions by October 4, including inquiries about measures the firms have implemented to prevent fraud. The Senators are seeking information on whether the companies provide scam warnings, impose transaction and deposit limits, and offer insurance for depositors against fraud.
Recent reports underscore the urgency of the issue: the FTC revealed that crypto ATM scams have increased tenfold since 2020, with losses climbing from $12 million to $144 million. The FBI reported that crypto fraud losses reached $5.6 billion in 2023, marking a 45% increase from the previous year. According to the FTC, the median reported loss in Bitcoin ATM-related fraud was $10,000 in the first half of this year, with the majority of losses suffered by older adults.
The Senators noted that some Bitcoin ATM operators have added scam warnings to their machines, which include screen prompts alerting customers to potential fraud. As of now, Bitcoin Depot, RockItCoin, Coinhub, and Bitstop have not responded to requests for comment outside of business hours.
