New Arizona Law by AARP Arizona to Combat Crypto ATM Scams Goes into Effect

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. In 2024, the FBI received 10,956 complaints about fraud related to virtual currency kiosks, totaling $246.7 million in losses. This was a 99 percent increase in complaints and 31 percent increase in losses from 2023. A large percentage of that loss is coming from within Arizona, who came in seventh in the nation for number of complaints (382) and had a total of $10,750,925 in losses related to crypto kiosks. We also know that fraud is vastly underreported.

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.

 
What You Need to Know About the New Law


As a result of hearing tragic stories regarding the loss of people’s entire savings, AARP Arizona got to work and passed HB 2387 in 2025. This bill was authored by Rep. David Marshall (R) and signed by Governor Hobbs on May 12^th. Here’s what you need to know about the bill:

• Creates a daily transaction cap for new and existing customers
  
  • $2,000 for new customers
  • $10,500 for existing customers
• Gives full refunds to new customers who have been scammed
• Warning and disclosure language presented to every user of the machine
• Requires the machines will provide a receipt for customers
• Requires the ATM company to use anti-fraud blockchain analytic software

Here’s what you need to do to be eligible for a refund:

• Contact law enforcement or the Attorney General’s office within 30 days
• Contact the Crypto ATM company within 30 days and provide them with a report from law enforcement or the Attorney General’s office that confirms you’ve been scammed