US senators propose to curb encryptionATM fraud and introduce the "encryptionATM Fraud Prevention Act"

Odaily Planet Daily News According to Senator Dick Durbin from Illinois, USA, on February 25, announced in the Senate that he has proposed a new bill aimed at reducing fraud cases of ATMs with encryption in the United States. Durbin told a voter's story, in which the voter deposited $15,000 through an ATM with encryption under the threat of a scammer claiming to be a law enforcement officer in order to avoid arrest. Senator Dubin said that this type of scam represents a "worrisome trend" of ATM fraud involving encryption in the United States, with approximately 30,000 encryption ATMs nationwide. To curb scams, especially targeting the elderly, he has introduced the "Encryption ATM Fraud Prevention Act" to implement some "common-sense protections" for encryption ATM transactions. Senator DooBin said, "The bill will require encryption ATM operators to warn consumers to guard against fraud and take reasonable measures to prevent fraud at the machine. At the same time, it will also take measures to limit consumers' losses when deceived and provide new tools for law enforcement to combat criminals." Although this fraud method uses encryption currency, its essence is a tactic commonly used by criminals over the years—threatening victims over the phone, demanding that they purchase gift cards and provide redemption codes, and facing false legal consequences if they do not pay. According to FBI data, in 2023, the United States lost more than 5 billion dollars due to encryption fraud, and many of the victims were elderly. According to Senator Doberman's proposal, this legislation would provide a two-week "special protection period" for consumers who use encryption ATMs for the first time. In addition, encryption ATMs will be required to limit daily deposits to no more than $2,000 per user, and verbal confirmation will be required for first-time user deposits of more than $500. In the event of fraud, the operator is also required to provide a full refund to the victim in certain circumstances. Senator Doo Bin's bill is one of the first bills related to encryption currency introduced in the 119th Congress of the United States. Previously, the U.S. House of Representatives and the Senate have respectively proposed relevant bills on stablecoin regulation. It is currently unclear whether the bill will receive enough support in the Republican-controlled Congress and ultimately be signed into law by President Trump. (Cointelegraph)