A Push To Curb Crypto ATM Fraud

AARP is working with government officials, law enforcement and other groups to warn consumers about the growing problem of scams involving cryptocurrency ATMs.

It’s part of a campaign by the North Carolina Senior Consumer Fraud Task Force, which includes the state’s attorney general, the secretary of state, the State Employees’ Credit Union and other stakeholders.

The task force is asking businesses with crypto kiosks to post signs warning consumers about the risks of fraud associated with the ATMs, which convert dollars into virtual currency. The signs note that criminals may use crypto ATMs because digital currency transactions are irreversible and hard to trace.

“The rise of cryptocurrency has opened the door for a new wave of financial scams and fraud,” state Attorney General Jeff Jackson said in a statement to the Bulletin.

Criminals pose as tech support staff, government officials or a romantic interest and urge victims to send them money via the ATMs, which look similar to regular bank ATMs and are often found in convenience stores, laundromats and gas stations.

"During 2024, almost 25% of the complaints my office received involved cryptocurrencies," Secretary of State Elaine F. Marshall said in a statement.

Nationwide, fraud losses through crypto ATMs jumped nearly tenfold from 2020 to 2023 and surpassed $65 million in the first half of 2024, Federal Trade Commission data shows. Officials say the actual numbers are likely higher because fraud is underreported.

The task force’s push will show “how easy it is for retailers to be part of the solution when it comes to fighting fraud,” says Steven Hahn, AARP North Carolina’s associate director for communications. He says AARP may also pursue legislation to regulate crypto ATMs and further protect consumers against fraud.