A bill called the "Crypto ATM Fraud Prevention Act" has been introduced in the United States Senate to protect consumers using cryptocurrency ATMs. The bill, sponsored by Democratic Senator Dick Durbin and three others, aims to implement measures for greater customer protection and scam prevention. It requires crypto ATM operators to warn customers about scams, use analytics to detect fraud, and broaden their responsibilities in fraud prevention. The bill also includes provisions to protect vulnerable populations, such as the elderly and newcomers to crypto. It proposes a two-week window for new customers with limited deposits and transaction confirmations through live telephone calls for transactions over $500. All customers would be eligible for a full refund for fraudulent transactions if they report it to the police within 30 days. The bill also mandates that all crypto ATMs provide paper receipts with information useful to law enforcement. The introduction of this bill comes as fraud at crypto ATMs is rapidly increasing, with consumers losing millions of dollars. Multiple states have proposed or advanced legislation to combat crypto ATM fraud, and some have even suggested a complete ban on crypto ATMs.



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