Durbin Speaks On His Amendment To The GENIUS Act That Would Crack Down On Crypto ATM Scams That Prey On Seniors
Durbin: “I urge my colleagues—on both sides of the aisle—to support my amendment to stop scammers in their tracks and provide protections for the people that they represent.”
WASHINGTON – As the Senate continues to consider the GENIUS Act, a bill meant to establish federal rules for stablecoins, U.S. Senate Democratic Whip Dick Durbin (D-IL) today called on his colleagues to support his amendment to this legislation, which would help prevent scammers from stealing Americans’ savings through cryptocurrency schemes. Each year, Americans, especially seniors, lose tens of millions of dollars to scams involving cryptocurrency ATMs. The largely unregulated nature of these machines, coupled with the anonymity and irreversibility of cryptocurrency transactions, make crypto ATMs a favorite tool for scammers.
Durbin’s amendment is based off his Crypto ATM Fraud Prevention Act, which aims to crack down on crypto scams by adding layers of protections to crypto ATM transactions and requiring greater transparency from cryptocurrency ATM operators. Along with Durbin, Senators Jack Reed (D-RI), Richard Blumenthal (D-CT), Maize Hirono (D-HI), and Sheldon Whitehouse (D-RI) are cosponsors of the amendment.
“Stablecoins are supposed to tie the value of crypto to the value of a dollar. But in 2023 alone, stablecoins differed from the value of a dollar more than 600 times. Not only are stablecoins and cryptocurrencies volatile, but the industry has a reputation for scams and fraud. The FBI recently reported that last year, in 2024, crypto-related crime was up 66 percent, and Americans lost $9.3 billion to crypto scammers. Nearly 150,000 complaints were filed involving crypto fraud, including more than 6,000 in my home state of Illinois,” Durbin said. “More than one third of all filed complaints involving crypto fraud were filed by Americans over the age of 50. Many of these scams were facilitated using these crypto ATM machines.”
Often, crypto scammers will contact elderly Americans, and using threats, intimidation, and fabricated backstories, will coerce them into depositing large sums of money into the criminals’ crypto wallets via cryptocurrency ATMs. According to data released by the Federal Trade Commission (FTC), the amount consumers reported losing in this form of fraud increased nearly tenfold between 2020 and 2023—from $12 million to $114 million. In 2024, the FBI’s Internet Crime Complaint Center received nearly 2,700 crypto ATM fraud complaints from individuals aged 60 and older—more than all other age groups combined.
“These crypto ATMs have become a favorite tool of scammers because once a victim purchases crypto and transfers it to the criminal’s digital wallet, it can be virtually impossible to trace or retrieve,” Durbin said. “These types of scams led to nearly $247 million in losses last year, a 31 percent increase over the previous year. And the crypto ATM companies know their kiosks facilitate this fraud… a large crypto ATM operator, Bitcoin Depot, wrote in its filing with the Securities and Exchange Commission exactly what I’ve said, and they said, ‘Our products and services may be exploited to facilitate illegal activity such as fraud, money laundering, gambling, tax evasion, and scams.’ That’s as close to a confession as you can get.”
Many states, including Minnesota, Iowa, and North Dakota, have passed state legislation to crack down on these scams. And just a few days ago, Illinois passed a state law to try to prevent these scams.
“Now it is time for Congress… to learn something from their example. We must act so that all Americans know the risks of crypto ATMs, have proper documentation when seeking help from law enforcement, and can try to get their hard-earned cash back. That’s why I am pushing for a vote on my amendment to the GENIUS Act, which would create commonsense guardrails to prevent crypto ATM fraud and empower law enforcement to combat these scams,” Durbin said. “My amendment would require crypto ATM operators to register with the federal financial regulators, provide warnings to customers about scams, and create daily transaction limits, so customers cannot lose their entire life savings in an instant.”
Durbin concluded, “With my amendment, crypto ATM operators would not be able to simply turn a blind eye to the fraud that is happening at their crypto ATM machines. We must put an end to these scams. I urge my colleagues—on both sides of the aisle—to support my amendment to stop scammers in their tracks and provide protections for the people that they represent.”
Video of Durbin’s remarks on the Senate floor is available here.
Audio of Durbin’s remarks on the Senate floor is available here.
Footage of Durbin’s remarks on the Senate floor is available here for TV Stations.
Full text of Durbin’s amendment is available here.
Specifically, Durbin’s amendment will:
- Require warnings about the risk of fraud: This amendment would require cryptocurrency ATM operators to provide clear warnings to consumers about the risk of fraud, including warnings of common types of scams and that consumers should never send money to someone they have never met.
- Require operators to develop an anti-fraud policy: Cryptocurrency ATM operators would be required to appoint a chief compliance officer and develop a comprehensive anti-fraud policy, which must be submitted to the Financial Crimes Enforcement Network. Operators also would be required to provide live customer support during all operating hours.
- Protect new customers—who are most likely to be victims of fraud: New customers, defined as a customer within 14 days of their first transaction, would be protected by the following provisions:
- Transaction limits of $2,000 per day, and $10,000 total over the first 14 days.
- Full refunds for fraudulent transactions if the customer makes a report within 30 days.
- Requiring live, verbal confirmation for any transaction greater than $500.
- Require crypto ATM operators to register and disclose ATM locations: Cryptocurrency ATM operators would be required to register with the Treasury Department and to disclose and regularly update the locations of all their ATMs. Operators also would be required to provide a point of contact to relevant regulators and law enforcement agencies.
- Require receipts and information sufficient to trace the transaction: Operators would be required to provide receipts for each transaction, including information sufficient to trace the transaction, such as the time, place, and amount of the transaction, and a transaction hash. Receipts also would have to include contact information for relevant law enforcement and a link to the operator’s refund policy.
Durbin’s legislation and amendment build upon his efforts to crack down on crypto scams. In September 2024, Durbin led a group of Senate Democrats in pressing the ten largest crypto ATM operators to curb fraud against elderly Americans. The Senators wanted to understand what steps—if any—these companies were taking to prevent fraudulent use of their machines.
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