Scams involving cryptocurrency ATMs have sharply increased in Colorado, with reports of fraud rising significantly between 2019 and 2024. Many victims, particularly older adults, are targeted through deceptive phone calls claiming urgency regarding their financial security. Local authorities are advocating for regulatory measures to mitigate these scams, while AARP is providing educational resources to help residents protect themselves from fraud.
William Walters, a resident of Colorado Springs, fell victim to a scam when a caller impersonating a Treasury official informed him that his identity was compromised. The scammer instructed him to withdraw his bank funds and deposit them into a cryptocurrency ATM. Walters lost $121,400 due to the fear instilled by the scam.
The trend of utilising cryptocurrency kiosks for scams has risen sharply, with El Paso County reporting a surge from one case in 2019 to 48 in 2024, amounting to $1.5 million lost in a single year. Detective Marissa Williams of the El Paso County Sheriff’s Office stated that many perpetrators, often operating from abroad, evade justice, leaving victims without recourse.
Fraud losses linked to crypto ATMs surged from 2020 to 2023, reaching over $65 million in the first half of last year, according to the Federal Trade Commission (FTC). Victims aged 60 and above were significantly more likely to lose money than younger individuals, highlighting the growing concern among older adults regarding financial scams.
Commonly, scammers initiate contact via phone calls, emails, or social messages, posing as figures from legitimate financial entities. They often create a sense of urgency, telling victims that their funds are at risk, prompting deposits into crypto kiosks to resolve the issue.
Another victim, Herb West from Colorado Springs, encountered a scam via a pop-up alert on his computer, leading him to believe his bank was compromised. After depositing $14,900 into a crypto ATM, he realised it was a scam and reported it. Both Walters and West assert that regulatory measures are necessary for consumer protection.
In Colorado, cryptocurrency ATMs lack stringent regulation, and Sgt. Ross Young advocates for legislative reform. A proposed bill aims to limit daily transactions for new customers to $1,000 and enforce clearer disclosures on crypto kiosk risks, while also ensuring refunds for fraudulent transactions. This bill is currently awaiting deliberation in the General Assembly.
Across the U.S., various states are implementing similar legal frameworks. Vermont enforces a $1,000 daily limit, while Minnesota allows refunds for reported fraud losses within 14 days and caps new users’ transactions at $2,000.
To counteract these scams, AARP and related organisations are actively educating Colorado residents about fraud prevention. A recent survey revealed that 78% of older citizens are concerned about fraud but many are not undertaking preventive measures, like credit monitoring. AARP ElderWatch will conduct events regarding credit management and fraud prevention this year.
For additional information on ElderWatch events, visit aarp.org/money/scams-fraud/elderwatch, or access resources from stopfraudcolorado.gov and aarp.org/fraudwatchnetwork.
