Durbin Offers Amendment To The GENIUS Act To Crack Down On Crypto ATM Scams That Prey On Seniors

WASHINGTON–As the Senate considers theGENIUS Actthis week, 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 hisCrypto 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. Durbin will offer his amendment with Senators Jack Reed (D-RI) and Richard Blumenthal (D-CT).
“Yesterday, the Senate voted to begin consideration of the modestly namedGENIUS Act, a bill that would regulate stablecoins, a form of cryptocurrency. Crypto is known as a volatile investment and more unpredictable than traditional financial assets like stocks and bonds. Last month, the value of Bitcoin, a type of crypto, dropped to $76,000, but it shot up to more than $100,000 last week,”Durbin said.“Supporters of theGENIUS Actsay that’s where stablecoins come in. They argue that stablecoins are tied to the value of the dollar, for example, so they never lose their value. The name stablecoin makes it sound secure, doesn’t it? But the name is misleading. In 2023 alone, stablecoins deviated from their underlying asset more than 600 times. That does not sound like stability to me.”
Durbin continued,“While I agree with supporters of theGENIUS Actthat crypto and stablecoins need to be regulated, I have genuine concerns about the bill. One is the amount of illicit finance that stablecoins could support. A recent report found that crypto facilitated $51 billion in illicit transactions and stablecoins accounted for 63 percent of all illicit crypto transactions. Many illegal crypto transactions involve crypto ATMs. You might have seen one at your grocery store or gas station, but you may not realize it. They allow you to trade in cash for cryptocurrency, but they also are a frequent tool of scammers and fraudsters who prey on Americans, especially senior citizens.”
Often,crypto scammerswill 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 2023, 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.
“Crypto ATM operators will claim that their kiosks give banking and crypto access to the unbanked, often those in the minority and low-income communities who historically have been locked out of the banking system. But in reality, the elderly and unbanked are the most vulnerable to scams involving crypto ATM fraud,”Durbin said.“States such as Nebraska, Arizona, and Connecticut have passed legislation to crack down on these scams. It's time for Congress to do the same. The result of the so-calledGENIUS Actis a dramatic increase in crypto activity. That means dramatic exposure to fraud. Let’s make sure this amendment, which I’m going to offer to theGENIUS Act, is adopted to protect innocent victims.”
Durbin continued,“I can tell you for sure you’re going to hear from senior citizens and others who have lost their life savings. That’s why I’m pushing for a vote on my amendment to theGENIUS Act. It prevents crypto ATM fraud and empowers law enforcement to prevent these scams. My amendment, based on theCrypto ATM Fraud Prevention Act, would require crypto ATM operators to warn consumers about scams, provide live customer support, [and] develop comprehensive antifraud policies. With my amendment, fewer Americans will be cheated out of their entire retirement savings in just a few days, and ATM operators would no longer be able to simply turn a blind eye to the fraud at their kiosks.”
Durbin concluded,“These scams have already harmed thousands of Americans and cheated them out of their life savings. Enough is enough. I urge my colleagues on both sides of the aisle: listen to the people you represent, particularly the senior citizens who are losing their life savings to these scams, and realize that with 30,000 crypto ATMs across the country, more and more of this will occur. We need to support this amendment that provides commonsense guardrails to stop scammers in their tracks and protect hardworking Americans.”
Video of Durbin’s remarks on the Senate floor is availablehere.
Audio of Durbin’s remarks on the Senate floor is availablehere.
Footage of Durbin’s remarks on the Senate floor is availableherefor TV Stations.
Full text of Durbin’s amendment is availablehere.
Specifically, Durbin’s amendment will:
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 inpressingthe ten largest Bitcoin 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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