A new bill, recently passed by the New Hampshire Senate, aims to protect victims of cryptocurrency ATM scams by offering potential reimbursements. If signed into law, individuals defrauded at crypto ATMs could receive their money back, provided they report the scam within 14 days. This bipartisan legislation seeks to combat the rising tide of crypto fraud, which has cost New Hampshire residents an estimated $22 million in 2024 alone.
Typically, these crypto scams unfold much like other financial frauds, but with a critical difference: victims are coerced into depositing cash into a cryptocurrency ATM. Once the funds are converted into cryptocurrency, they become extremely difficult, if not impossible, to trace and recover.
Lawmakers heard from Hampton’s police chief that over $2.6 million was lost to scammers in his town during 2024, with victims averaging 66 years of age.
Senator Virginia Birdsell, a Republican from Hampstead, passionately advocated for the bill’s passage in the Senate on Thursday.
“This is becoming a scourge on our elderly,” she emphasized.
Key provisions of the bill mandate that cryptocurrency ATM operators must hold a person’s initial deposit for 48 hours, allowing a window for cancellation if a scam is detected. Furthermore, operators would be prohibited from accepting more than $2,000 per day from any single individual. Crucially, operators would be obligated to refund a scam victim if the fraud is reported to both the operator and relevant authorities within 14 days.
Similar protective measures are already in place in nearly 25 other states, though many of these states provide a longer window, up to 90 days, for victims to claim refunds.
In related actions, Massachusetts is currently suing a crypto ATM provider, Bitcoin Depot, alleging its machines were knowingly used to facilitate scams. Maine previously reached a $1.9 million settlement with the same operator this year, setting a Wednesday deadline for victims to file claims.
The New Hampshire bill will now advance to the House of Representatives for further consideration.