[ad_1]
Swindles at automated teller machines (ATMs) that deal in Bitcoin (BTC) have become increasingly common, causing clients who aren’t paying attention to lose significant sums of money.Jim Meduri, who lives in San Jose, received a phone call from someone posing as his son in a recent incidence of this kind. The imposter said that his son had been in a car accident and that he needed money immediately, as reported by The Los Angeles Instances.
Because of his deep concern for his son’s well-being, Meduri gave in to the pressure and decided to send the bail money through a Bitcoin ATM.
“They performed on concern and what a father or mother would do to assist their child, and it was elaborate,” according to Meduri.
He followed the con artists’ instructions and transferred the funds after placing $15,000 in cash into the machine and adopting their methodology. Meduri did not become aware that he had been a victim of fraud until much later.
Regulators to Take Motion Towards Bitcoin ATM Scams
The situation with Meduri is just one example of con artists taking advantage of Bitcoin ATMs to swindle victims who are not paying attention.
These machines, which may be found in convenience stores, petrol stations, and even bakeries, give customers the ability to quickly buy Bitcoin using cash, which makes the transaction more difficult to trace in comparison to wire transfers or cheques.
Scammers are taking advantage of the convenience that automated teller machines (ATMs) provide, and law enforcement agencies are issuing warnings to the general public about this growing trend.
Beginning in the month of January, the state of California will begin enforcing Senate Bill 401, which will cap bitcoin ATM transactions to $1,000 per day and per individual.
Beginning in 2025, the bill that Governor Gavin Newsom signed into law places a limit on the fees that bitcoin ATM operators can charge customers. The limit is either $5 or 15% of the transaction amount, whichever is greater.
The implementation of these safeguards is geared towards preventing large sums of fiat currency from being used to purchase cryptocurrencies and protecting individuals from being taken advantage of by con artists.
Scams using cryptocurrencies have been around since long before the popularity of digital assets, but the use of cryptocurrencies by con artists has significantly increased in recent times.
According to the Federal Commerce Commision, over one billion dollars’ worth of cryptocurrencies has been stolen in scams since 2021, with over 46,000 victims having come forth with their stories.
The regulators claim that if they limit the number of transactions that may take place at Bitcoin ATMs, it will give users more time to recognise fraudulent schemes and prevent them from spending significant amounts of money to purchase bitcoin.
Crypto ATM Operators Warn Towards Extreme Regulation
Despite this, owners of cryptocurrency ATMs warn that excessive regulation and severe requirements will be detrimental to their business as well as the smaller businesses who host these machines.
The operators, despite the fact that they recognise the need of addressing concerns, are opposed to charge caps and transaction limits. They argue that scams are prevalent in other industries despite the absence of equivalent regulations.
They suggest imposing increased identification requirements for high-value transactions and identifying questionable actions as a way to successfully prevent scammers.
Charles Belle, the executive director of the Blockchain Advocacy Coalition, stated in a written piece that “it is important that we strike the suitable balance between protecting consumers from harm and fostering an environment that is accountable for innovation.”
