News

Calif. lawmakers intro bill to regulate independent ATMs

December 16, 2003

SACRAMENTO, Calif. - A bill designed to prevent fraud at independently owned ATMs was introduced on Dec. 16 by three California Assembly members, according to a report in the Sacramento Bee.

The bill would tighten rules regarding ATM ownership, including requiring background checks and licenses. ATM owners would be closely monitored by the California Department of Financial Institutions, which would establish guidelines governing ATMs not owned by banks.

The legislation is prompted by growing evidence of fraud nationwide involving privately owned ATMs, said Dan Reeves, chief of staff for Assemblyman Dario Frommer, D-Los Angeles, one of the bill's sponsors.

Frommer referenced the case featured in a recent "Dateline NBC" report, in which thieves purchased more than 50 ATMs and used them to steal $4 million in cash and personal information from more than 21,000 ATM customers. (See related stories Skim scam man, Playing by the rules -- and punishing those who aren't and Leader of skimming gang arrested in Detroit)

The bill also is sponsored by Assemblywoman Patricia Wiggins, D-Santa Rosa, and Assemblywoman Sarah Reyes, D-Fresno, according to the Bee report.