North Dakota - The Rise in BTC ATM Scams & AARP's Call For Regulation

Bitcoin ATM scams have been increasing in North Dakota, prompting calls for regulation from organizations like AARP.

There has been a notable increase in scams involving Bitcoin ATMs in North Dakota. Scammers often pose as law enforcement or other authorities, convincing victims to pay fines or fees using Bitcoin. These scams frequently target older residents, exploiting their unfamiliarity with cryptocurrency transactions.

Scammers use scare tactics, such as claiming there are arrest warrants, to coerce victims into using Bitcoin ATMs. They may also impersonate local law enforcement by using their phone numbers or logos to appear legitimate.

AARP North Dakota is advocating for House Bill 1447, which aims to regulate cryptocurrency kiosks. The bill includes provisions for licensing operators, imposing a daily transaction limit of $2,000, displaying fraud warnings, and requiring detailed transaction receipts.

AARP highlights that these machines resemble traditional ATMs, leading people to believe they are secure. However, once money is transferred to a scammer's wallet, it is virtually untraceable and irretrievable.

This bill passed the North Dakota Senate with a strong vote and includes several key measures such as operators must obtain money transmitter licenses, a $2,000 limit per customer to prevent excessive transactions, visible warnings about potential scams must be displayed and operators must use software to detect suspicious activities.

These regulations aim to protect consumers, especially seniors, from falling victim to scams. Similar legislation has been enacted in other states, and federal proposals are under consideration.

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