News
We have introduced legislation to regulate cryptocurrency automated teller machines (ATMs) in Rhode Island,
Rep. Julie A. Casimiro and Sen. Victoria Gu | Guest commentators
Congresswoman Julie A. Casimiro, a Democrat, represents District 31 in North Kingstown and Exeter. Senator Victoria Gu, a Democrat, represents District 38 in Charlestown, Westerly and South Kingstown.
A worrying phone call in the middle of the night from a stranger or someone claiming to be an authority and saying a family member is in danger.
An email that appears to have been sent from a loved one asking for money.
A link to a harmless website to donate to a worthy cause.
Moreover: How to Know if a FEMA Inspector is Legitimate to Avoid Scams During the Disaster Relief Process
These cases, and many others, represent how scammers insert themselves into your life and the lives of your loved ones.
And sadly we see older people being targeted by these techno-criminals at an alarming rate.
What grandmother wouldn’t want to help her grandchild in an alarming or dangerous situation?
It is this loving mentality that allows these scammers to take advantage of our elderly population, sometimes getting away with thousands of dollars that can never be recovered. And with new and rapid technological advances every day, the ability of scammers to steal our money and evade justice is increasingly sophisticated.
This is why we have introduced legislation to regulate cryptocurrency automated teller machines (ATMs) in Rhode Island, to make it harder for our friends, family and loved ones to be scammed and robbed by bad actors.
Moreover: “Scams are rampant:” Police arrest man for allegedly defrauding grandparents
Currently, there are more than 120 crypto ATMs in convenience stores, laundromats, liquor stores, tobacco shops and other establishments in Rhode Island. They allow people to deposit cash and easily convert it into cryptocurrency and look a lot like regular ATMs. These machines have no transaction limits, making them extremely dangerous for our elderly residents who are directed to use them in the scam process. There is no limit to the amount a scammer can take from our residents in transactions and once the process is complete, there is virtually no way to recover the money.
FBI data shows Rhode Islanders lost a total of $2,245,844 to cryptocurrency scams in 2023.
The guardrails and regulations for crypto ATMs in our legislation will go a long way in protecting our population from scams with these machines. Hopefully, daily transaction limits and clear, precise warnings about the nature of cryptocurrencies, how they work and how they could be used in sophisticated scams and crimes will give our residents pause should they receive a phone call or email scam that invites them to put their hard-earned money into a crypto ATM for the purpose of helping a loved one in need or paying off a fraudulent debt to the government or law enforcement.
New emerging technologies like cryptocurrencies are exciting and often offer a simpler and more streamlined daily life. But it is important that we all know the dangers to ourselves and our bank accounts that too often arise from new technologies that can be exploited by criminals and bad actors.
Hopefully, this bill will help protect Rhode Island residents from falling prey to these alarming and surprising crimes, but, as always, we must also remain vigilant and aware that we cannot take advantage of them, because these scams become more elaborate and complex.