A new Arizona bill aims to protect residents from Bitcoin ATM scams following a series of incidents, including one where a woman lost $17,000 to fraudsters.
House Bill 2387, introduced by state representative David Marshall, proposes strict regulations on cryptocurrency ATM operations.
The legislation comes after Tamara, a Social Security recipient from Peoria, fell victim to scammers posing as PayPal representatives.
According to an ABC News affiliate, she was persuaded to withdraw $7,000 from her checking account and $10,000 from her individual retirement account (IRA), which she subsequently transferred using a Bitcoin (BTC) ATM.
The scammers used threats and pressure tactics, claiming her accounts had been compromised and that the transfers were necessary to protect her funds.
Arizona Attorney General Kris Mayes told ABC15 that Bitcoin-related scams are increasing due to the cryptocurrency’s difficult-to-trace nature. The proposed bill would implement several protective measures, including:
- A $1,000 daily transaction limit
- Mandatory state operator licensing
- Required refund policy options
The scale of cryptocurrency ATM fraud has grown substantially in recent years. The FBI’s 2023 Cryptocurrency Fraud Report revealed that Arizona residents lost approximately $127 million to virtual money fraud, with seniors over 60 being particularly vulnerable.
Federal Trade Commission data shows Bitcoin (BTC) ATM fraud has surged from $12 million in 2020 to $112 million in 2023.
Tamara’s case is an example of common tactics used by scammers, who often create urgency and fear to override victims’ suspicions.
“My Spidey senses were going off, but it was like he said he wasn’t going to put the money back in unless you complete this task and then it was like a threat,” she explained to ABC15.
The proposed legislation shows Arizona’s effort to address this growing threat through increased regulation of cryptocurrency ATM operations, aiming to protect vulnerable residents from similar schemes.
The number of Bitcoin ATMs worldwide grew by 6% in 2024, reflecting the increasing mainstream adoption of cryptocurrency.
These machines function like traditional ATMs but allow users to buy and sometimes sell Bitcoin and other cryptocurrencies using cash or bank cards, though selling fees tend to be higher.
The first Bitcoin ATM was introduced in Vancouver in 2013, and their presence has since expanded to over 37,500 machines in more than 70 countries.
Recent data from Finbold, citing Coin ATM Radar, confirms this ongoing growth trend.
