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BTC Pulse 2025-02-08 18:04:14

Arizona Lawmakers Push Bill to Curb Bitcoin ATM Fraud

Arizona Lawmakers Push Bill to Curb Bitcoin ATM Fraud

Arizona Submits House Bill 2387 In light of the continually growing number of frauds pertaining to cryptocurrencies, Arizona state representative David Marshall has proposed a bill to increase regulations surrounding Bitcoin ATMs. This would include capping transactions to $1,000 per day, licensing the machines by the operator, and the business needing to establish a refund policy. Victims Targeted Through Fears The law comes after years of fraud cases, including the case of Tamara, a Social Security recipient living in Peoria. Scammers, posing as PayPal representatives, convinced her to transfer $17,000 using a Bitcoin ATM, claiming her accounts were compromised. In this case, reported by an affiliate of ABC News , the fraudsters had Tamara first withdraw $7,000 out of her checking account and another $10,000 from her IRA. Under threat, pressed for speed, Tamara sent the funds before any realization she’d been defrauded. Bitcoin ATM Scams on Rise Arizona Attorney General Kris Mayes has warned that cryptocurrency scams are increasing due to Bitcoin’s difficult-to-trace nature. The FBI’s 2023 Cryptocurrency Fraud Report revealed that Arizona residents lost $127 million to crypto scams last year, with seniors being the most vulnerable. Nationally, the Federal Trade Commission said Bitcoin ATM fraud jumped from $12 million in 2020 to $112 million in 2023. Most of the scams include impersonation tactics, where fraudsters may pose as law enforcement or tech support representatives to pressure people into making ATM transactions. National and Global Impact Despite fraud concerns, Bitcoin ATMs have been on the rise. Globally, the number of machines has grown 6% in 2024, reflecting the growing adoption of digital currencies. These are similar in operation to any other, only that they allow the user to buy and sell cryptocurrency ; the selling fees usually tend to be a bit higher. The first Bitcoin ATM was introduced in Vancouver in 2013, and today more than 37,500 machines are in operation in over 70 countries. Strengthening Consumer Protection If signed into law, House Bill 2387 will put stricter controls on the operations of Bitcoin ATMs in Arizona and could set a wider precedent for the regulation of broader cryptocurrency in the United States. It aims to protect vulnerable residents and limit the financial damage caused by crypto fraud schemes.

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