Lawmakers seek to tackle fraud as reports show seniors losing millions through Bitcoin kiosks
A growing number of US lawmakers are turning their attention to cryptocurrency ATM fraud, as scams involving kiosks continue to cost consumers millions. Senator Cynthia Lummis of Wyoming has suggested that the Senate’s pending market structure bill could help close gaps in oversight.
Crypto ATM fraud on the rise
In a recent statement, Senator Lummis highlighted a report from Cheyenne police, which documented 50 separate fraud cases involving crypto ATMs, with losses totaling more than $645,000. Victims were primarily seniors, often tricked into depositing cash into kiosks and converting it into Bitcoin for scammers.
The issue reflects a nationwide problem. According to the FBI, there were nearly 11,000 fraud complaints linked to crypto kiosks in 2024, with total reported losses exceeding $246 million.
“One of the goals of this legislation is to ensure proper protections are in place for vulnerable groups who are often targeted through these machines,” Senator Lummis stated. She added that fraud prevention measures and clearer rules for ATM operators may be included as the bill progresses.
The Senate Banking Committee is expected to vote on the digital asset market structure bill by the end of the month. While the draft text has not explicitly addressed ATMs so far, Lummis indicated that provisions remain under discussion.
States already acting on crypto ATMs
In the absence of federal rules, many states and cities have taken their own steps. Local governments from Minnesota to Washington have either banned kiosks outright or imposed strict daily limits, such as Michigan’s $1,000 cap per transaction.
Policy experts note that fragmented state laws create uneven consumer protections, underscoring the urgency of national legislation. “A federal framework is needed to unify standards and ensure fraud prevention tools are consistent across the country,” said a Washington-based digital policy analyst.
As the debate continues, the Senate’s final draft could mark the first federal law targeting crypto ATM scams, a step advocates believe is necessary to protect consumers while supporting innovation in digital payments.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.