The new Arizona bill aims to protect residents from Bitcoin ATM scams, including a series of incidents that included a woman losing $17,000 to a fraudster.
House Bill 2387, introduced by state legislator David Marshall, proposes strict regulations regarding cryptocurrency ATM operations.
The law comes after Tamara, a Social Security Beneficiary from Peoria, became the victim of a fraudster who pretended to be a PayPal representative.
According to ABC News Affiliate, she was persuaded to withdraw $7,000 from her checking account and $10,000 from her individual retirement account (IRA).
The con man uses threats and pressure tactics to argue that her account is compromised and that a transfer is necessary to protect her funds.
Arizona Attorney General Chris Mays told ABC15 that bitcoin-related scams are on the rise due to the difficult nature of cryptocurrency tracing. The proposed bill implements several safeguards, including:
- $1,000 daily trading limit
- Required State Operator License
- Required refund policy options
The scale of Cryptocurrency ATM scams has been increasing significantly in recent years. The FBI's 2023 cryptocurrency fraud report revealed that Arizona residents lost around $127 million in virtual money fraud.
Bitcoin (BTC) ATM fraud has skyrocketed from $12 million in 2020 to $112 million in 2023, according to data from the Federal Trade Commission.
Tamara's case is an example of a common tactic used by con artists, who often create urgency and fear that negates suspected victims.
“My Spidey sense had disappeared, but it seemed like he said he wasn't going to put his money back on unless he completed this task, and that was a threat,” she told ABC15. I've explained it.
The proposed law illustrates Arizona's efforts to address this growing threat through an increase in regulations on cryptocurrency ATM operations, aimed at protecting vulnerable residents from similar schemes.
The number of Bitcoin ATMs worldwide rose 6% in 2024, reflecting an increase in mainstream adoption of cryptocurrency.
These machines work like traditional ATMs, but users can use cash or bank cards to buy and sell Bitcoin and other cryptocurrencies, but the selling fees are high There is a trend.
The first Bitcoin ATM was introduced in Vancouver in 2013, and its existence has since expanded to over 37,500 machines in over 70 countries.
Recent data from Finbold citing the Coin ATM radar confirms this continuing growth trend.
