AARP Backs Legislative Action to Stop Crypto Kiosk Scams

New Bill Aims to Protect Consumers - Especially Older Adults - from Fraud and Financial Loss

In response to a surge in scams and financial crimes involving cryptocurrency kiosks, also known as “crypto ATMs,” “bitcoin ATMs,” or “BTMs,” Washington state leaders are championing Senate Bill 5280 to strengthen consumer protections and curb criminal activity. The bill, supported by advocates and consumer protection organizations, aims to address the growing threat posed by unregulated virtual currency kiosks.

Crypto kiosks, which resemble traditional bank ATMs, are often located in supermarkets, convenience stores, gas stations, and restaurants. They allow users to convert cash into digital assets, offering convenience but also exposing consumers to serious fraud risks. In many tech support, extortion, or government impersonation scams, criminals instruct victims to withdraw cash and deposit it into a crypto kiosk to purchase virtual currency—then transfer it to the scammer’s digital wallet. Because cryptocurrency transactions are irreversible, recovering stolen funds is nearly impossible.

Older adults are disproportionately impacted. In 2024, the FBI received 10,956 complaints involving crypto kiosks, with Americans reporting $246.7 million in losses. Alarmingly, 85% of those losses were suffered by adults age 60 and older.

“Fraud devastates victims and families—financially and emotionally,” said Cathy MacCaul, AARP Advocacy Director. “Crypto kiosk scams are stealing millions from Washington families. Senate Bill 5280 is a critical step toward safeguarding our communities and protecting our loved ones.”

Nationwide, there are more than 30,000 crypto kiosks, including approximately 1,000 in Washington. Unlike banks and other regulated financial institutions, these kiosks lack basic consumer protections.

 Senate Bill 5280 would introduce key safeguards, including:

• Capping daily transactions at $1,000 per consumer
• Limiting fees to $5 or 15% per transaction (whichever is greater)
• Requiring paper receipts for all transactions
• Posting clear, visible scam warnings on every kiosk

These measures will help reduce fraud, money laundering, and financial harm while giving law enforcement better tools to investigate suspicious activity.

“Eighteen states have already acted to protect residents from crypto kiosk fraud,” MacCaul added. “Washington is ready to join them. By working together—state leaders, consumer advocates, and organizations like AARP—we can better protect residents, especially older adults, from financial exploitation.”