Key Points
- Arizona is introducing a bill to guard against Bitcoin ATM scams.
- The bill comes after a series of fraud incidents, with one woman losing $17,000.
Arizona is considering a new bill aimed at safeguarding its citizens from scams involving Bitcoin ATMs.
This move comes in the wake of several fraud cases, including an incident where a woman was defrauded of $17,000.
Details of the Proposed Bill
House Bill 2387 was presented by state representative David Marshall.
The bill suggests implementing stringent regulations on the operations of cryptocurrency ATMs.
This legislative move was triggered by an incident involving a Social Security beneficiary named Tamara from Peoria, who fell prey to fraudsters pretending to be representatives from PayPal.
As reported by an ABC News affiliate, Tamara was swindled into withdrawing $7,000 from her checking account and $10,000 from her individual retirement account (IRA), which she then transferred via a Bitcoin (BTC) ATM.
The fraudsters used intimidation and high-pressure tactics, claiming her accounts were compromised and that the transfers were necessary to safeguard her money.
Increasing Bitcoin-Related Scams
Arizona Attorney General Kris Mayes informed ABC15 that Bitcoin-related scams are on the rise due to the anonymous nature of the cryptocurrency.
The proposed bill aims to introduce several protective measures, such as a $1,000 daily transaction limit, compulsory state operator licensing, and mandatory refund policy options.
Cryptocurrency ATM fraud has significantly increased in recent years.
The FBI’s 2023 Cryptocurrency Fraud Report disclosed that Arizona residents lost about $127 million to virtual money fraud, with seniors over 60 being particularly susceptible.
Data from the Federal Trade Commission indicates that Bitcoin (BTC) ATM fraud jumped from $12 million in 2020 to $112 million in 2023.
Tamara’s case illustrates the typical strategies employed by fraudsters, who often generate a sense of urgency and fear to override victims’ suspicions.
The proposed legislation demonstrates Arizona’s commitment to tackling this escalating threat through enhanced regulation of cryptocurrency ATM operations, aiming to safeguard susceptible residents from similar scams.
The number of Bitcoin ATMs globally increased by 6% in 2024, reflecting the growing mainstream acceptance of cryptocurrency.
These machines operate like traditional ATMs but enable users to purchase and sometimes sell Bitcoin and other cryptocurrencies using cash or bank cards, although selling fees are generally higher.
The first Bitcoin ATM was launched in Vancouver in 2013, and their presence has since grown to over 37,500 machines in more than 70 countries.
Recent data from Finbold, citing Coin ATM Radar, confirms this ongoing growth trend.