AARP Massachusetts Pushes Bill to Curb Crypto ATM Scams

In the spring of 2024, Paul Miller, 84, came across a puzzling email in his inbox: a message about a $459.88 PayPal charge for a purchase he never made. When he called the customer service number listed to dispute the transaction, the man on the other end “discovered” a total of $1,500 in fraudulent charges under Miller’s name. He assured Miller he would take the charges off his account.

Instead, the supposed customer service representative ended up stealing far more money from Miller, a retired sales manager who lives in Boxford.

After Miller gave the man his checking account number, ostensibly to process a refund, the criminal said he had mistakenly given him $15,000, instead of $1,500. To rectify that “mistake,” he told Miller to withdraw the difference from his bank and take the cash to a cryptocurrency ATM at a nearby gas station.

A few hours after he deposited the money, Miller had a sinking feeling that the “customer service representative” wasn’t really from PayPal. “I realized this was a disaster and a scam,” he says.

During this year’s legislative session, AARP Massachusetts is pushing a bill to combat crypto ATM-related fraud, which has become a growing problem across the country.

Cryptocurrency is a digital or virtual currency—there are no paper bills or metal coins—that is not sponsored or managed by any government. Crypto ATMs—some are known as Bitcoin ATMs or virtual currency kiosks—have popped up across the state in gas stations, convenience stores and other businesses. And they are being used by criminals as a tool to steal large sums of money from U.S. consumers.

Fraud losses through crypto ATMs increased almost tenfold nationally from 2020 to 2023 and surpassed $65 million in the first half of 2024, according to the Federal Trade Commission. People 60 and older were more than three times as likely as younger adults to report losing money in such scams, the FTC says. Officials say the true numbers are far higher because many cases of fraud are not reported.

The AARP-backed bill—pending in the state House and sponsored by state Reps. Kate Lipper-Garabedian (D-Melrose) and Thomas M. Stanley (D-Waltham)—would limit crypto ATM transactions to $1,000 per day and require a customer receipt. It would also require crypto ATM operators to post a prominent warning on each machine stating that:

• Losses due to fraudulent transactions are not recoverable.
• Transactions made through virtual currency are irreversible.
• Criminals impersonating the government, organizations or loved ones may use virtual currency transactions to steal your money.

“The lack of oversight and regulation of these machines, as well as their convenient locations for use, makes them ideal for fraudulent scams against older adults,” Lipper-Garabedian said in an email to the Bulletin. She said the warnings, transaction caps and other protections in her bill would help provide “a comprehensive framework to ensure safe use of these machines.”

An identical measure is pending in the state Senate.

Ryan Berard, AARP Massachusetts’ associate state director of advocacy, says the organization has enlisted its volunteers to contact state lawmakers and advocate for passage of the proposal.

Red flags for fraud

There are now more than 650 cryptocurrency kiosks operating in Massachusetts, according to a crypto ATM tracking site.

The ATMs are one way for people to convert dollars into crypto. Criminals like them because transactions are difficult to trace.

“No legitimate entity will ever demand cryptocurrency as the only acceptable form of payment,” notes Essex County District Attorney Paul F. Tucker. “If a party instructs you not to discuss a transaction with others first, beware.”

Another warning sign, he says, is if the person demanding money says it’s urgent.

“Scammers want to rush you, but credible institutions will not mind if you want to discuss a situation with a trusted source first,” Tucker says.

With AARP’s support, other states are passing laws to curb crypto ATM-related fraud. For example, Vermont has a $1,000 daily cash transaction limit. In Minnesota, new crypto ATM customers can get refunds for fraud losses if reported within 14 days, and their daily transactions are capped at $2,000.

Daily transaction limits and warning signs on crypto ATMs could help interrupt or slow down a crime in process, AARP’s Berard says.

“The goal of a person who’s scamming someone is usually to keep them in a state of agitation and confusion,” Berard says.

David O’Sullivan, deputy chief of the appeals unit of the Essex County District Attorney’s Office, says money lost to crypto ATM fraud is very difficult to recover.

Miller’s case proved to be a lucky exception. Because his son — who had tried to warn Miller it was a scam — immediately called the Boxford police, law enforcement worked with the Essex County District Attorney’s office to trace the transaction to an international exchange—a platform that facilitates the buying and selling of cryptocurrencies. Another break: that exchange was one that respects U.S. laws.

Miller got his money back in early March.

“It was such a scheme, and we won,” Miller says, adding that his son’s quick call to the police was key. “These guys are very, very, very good,” he says of the scammers. “They pull you in, and you don’t even believe your own family.”

To learn more about this bill and other legislation AARP Massachusetts is supporting, go to aarp.org/advocacyma.

Cristina Rouvalis, a writer based in Pennsylvania, covers business, health care and other issues. She has written for the Bulletin for more than a decade.

 Also of interest:

• What to Know About Cryptocurrency Scams
• $12.5 Billion Reported Lost to Scams and Fraud in 2024, Older Adults Hit Hard
• Five of the Biggest Scams to Watch For in 2025