Bitcoin ATM companies urged to do more to protect the elderly from scams

HARTFORD, CT (WFSB) - Bitcoin ATM companies are being called out to do more to curb fraud against the elderly.

Sen. Richard Blumenthal scheduled a news conference for Wednesday in Hartford to demand that large Bitcoin ATM companies do more the combat cryptocurrency ATM scams.

Blumenthal said the scams have skyrocketed across the country.

He said he joined U.S. Senate Majority Whip Dick Durbin of Illinois to urge the 10 largest companies to take action.

He noted that BTMs have become more prevalent and accessible in recent years and have increasingly become a favored tool of criminals preying upon vulnerable and elderly Americans.

More than 500 BTMs are operated in Connecticut, Blumenthal said.

He cited a recent report from the Federal Trade Commission that said consumers reported losing $114 million to the scams in 2023. That was a tenfold increase over the last three years.

The FTC said the scams start out as a phone call or message about suspicious activity on a bank account. The call or messages appear to come from a government agent who claims money in the bank account is at risk and the only way to fix the problem is to deposit money into a BTM.

Blumenthal said he planned to urge swift protections for consumers and demand companies do everything in their power to ensure BTMs are not used for fraud.

He said he’ll be joined by Connecticut State Police Det. Matthew Hogan and state Rep. Jaimie Foster.

The news conference was scheduled for 11:30 a.m. at the state capitol.