AARP Arizona Joins the Fight to Stop Scammers from Using Crypto ATMs to Steal Millions from Older Adults

Cryptocurrency kiosks, known more commonly as crypto ATMs, are beginning to pop up in gas stations, convenience stores, and smoke shops across the country. These kiosks look like regular ATMs but are used for converting cash into crypto dollars. They also lack most of the regulations and safety features of traditional ATMs, making them an easy and often untraceable way for criminals to gain access to victim’s money.

Arizona currently has around 600 of these crypto ATMs across the state. As the number of machines increases year over year, so does the amount being scammed from victims. The Federal Trade Commission (FTC) reported just $12 million dollars in fraud loss in 2020, though many fraud losses go unreported. In 2023 that number jumped to $112 million. Last year, the city of Peoria alone reported nearly a million dollars scammed through crypto ATMs.

AARP Advocacy Director, Brendon Blake, and Arizona Law Enforcement spoke to Arizona’s Family about how these scams are affecting Arizona residents.

How Crypto ATM Scams Work

The types of scams being utilized have by and large remained the same, with government impersonation scams, investment scams, and romance scams being among the most common. What has changed is the technology and methodology for how the money exchanges hands. Criminals, counting on the common confusion around virtual currency, will instruct their victim to withdraw cash from their bank and deposit it into a crypto ATM. The money is then sent to the scammers digit wallet. Once there, the money becomes nearly impossible to get back.

The digital accounts being utilized in crypto scams are extremely tough to trace because unlike with bank accounts, which offer consumer protections, cryptocurrency is not government issued, and crypto ATMs are largely unregulated. Unfortunately, older adults are disproportionately affected by fraud and scams utilizing crypto ATMs. People over 60 are more than three times as likely to report a loss from a crypto ATM, accounting for more than two of every three dollars reported lost to fraud using these machines.

To combat this growing issue, AARP is advocating for state laws that provide important consumer protections that will deter criminals from leveraging crypto ATMs in their scams and protect older adults from losing their hard-earned money. This year, AARP Arizona has introduced HB 2387, a bill that will do just that.

HB 2387 Overview

A top priority for AARP Arizona in 2025, HB 2387 aims to increase the safety of crypto ATMs by adding a few key consumer protections. One of the most important safeguards HB 2387 introduces is a $2,000 daily transaction limit for new customers, or individuals using a crypto ATM for the first time, and a $5,000 daily limit for existing customers. The average amount of crypto currency being purchased at crypto ATMs in 2024 was around $900. However, most scam victims are instructed to place tens of thousands of dollars into crypto ATMs. This daily limit, being well above the average legitimate purchase amount, would have a minimal affect on normal users, but could mean the difference between scam victims losing $2,000 or their entire life savings. HB 2387 would also require crypto ATMs to provide the individual who made the transaction at the kiosk with a either a paper or digital receipt with relevant transactional information, allowing law enforcement to investigate any fraudulent activity. Lastly, the bill would require all crypto ATM operators to post visible fraud warnings that identify steps individuals should take if they suspect fraudulent activity, as well as provide a 24/7 customer service line available to both law enforcement and customers for fraud concerns.

HB 2387 Updates:

After being introduced into Arizona’s 57^th legislative session in January, HB2387 was passed unanimously out of both of its assigned House Committees: House Commerce on February 18th and House Rules on February 24th. An amended version of the bill was heard on the House Floor
on March 4^th and passed out of the House 50-8. HB 2387 has moved onto the Senate and is currently waiting for committee assignment.

To learn more about to learn to spot and avoid scams, visit the AARP Fraud Watch Network.