Crypto ATM Fraud Prevention Act of 2025

Enhanced Consumer Protection: Operators are required to provide clear warnings about common fraudulent schemes, such as impersonation of officials or threats of jail time, which helps protect people from scams (Section 3(b)(2)).

Refund Rights for Fraud Victims: The bill establishes a process where customers who are fraudulently induced to engage in a transaction can receive a refund, including the full amount of the virtual currency and fees for new customers (Section 3(j)(1)(A)).

Verification of Intent: For new customers making transactions of $500 or more, operators must obtain verbal confirmation via a live phone or video call to ensure the person is not being fraudulently induced (Section 3(i)).

Increased Transparency: Operators must provide customers with a physical receipt that includes specific transaction details, such as the transaction hash and the operator's contact information (Section 3(d) and 3(e)).

Fraud Prevention Technology: The bill requires operators to use blockchain analytics to detect transaction patterns indicative of fraud and prevent sending money to wallets known to be affiliated with fraudulent activity (Section 3(h)).

Restrictions on Transaction Amounts: New customers will face limits on how much they can transact, specifically no more than $2,000 in a 24-hour period and a total of $10,000 (Section 3(k)).

Increased Burden for Operators: Companies operating these kiosks must fund and maintain a full-time compliance officer, a live customer service helpline available during all operating hours, and a dedicated contact method for law enforcement (Section 3(g), 3(l), and 3(m)).

Financial Risk of Non-Compliance: Operators face significant financial penalties, including civil penalties of $10,000 for each violation and potential liability of three times the refund amount or $10,000 for willfully denying a refund (Section 3(j)(3) and 3(n)).