Bitcoin Depot will begin verifying customers’ identities each time they use its ATMs, voluntarily refining its compliance procedures amid mounting pressure from state prosecutors.
By making personal IDs mandatory for every transaction, the company is trying to tamp down on account sharing, identify theft, and account takeover attempts, it said. In October, Bitcoin Depot began requiring customers to provide IDs when they initially use its services.
“Verifying identity at every transaction helps us catch patterns that might not show up during onboarding,” CEO Scott Buchanan told Decrypt. “Bitcoin Depot takes this matter very seriously as we continue to prioritize customer trust and security.”
Scammers are increasingly targeting seniors using Bitcoin ATMs because of the irreversible nature of transactions on the asset’s network. They often coach victims to send them funds under the guise of “government payments” or “tech support” before disappearing.
The complaint notes that customers were only required to provide a phone number when purchasing small amounts of Bitcoin before Bitcoin Depot refined its policy in October.
Under the lawsuit, Campbell requested that Bitcoin Depot be barred from accepting transactions valued at more than $10,000 “without taking additional steps to prevent fraud,” such as asking a series of questions to identify fraud risks and establishing a refund process for victims.
