AARP Massachusetts is taking action against scams facilitated by cryptocurrency ATMs, which have become tools for fraudsters targeting older adults. The rise in fraud incidents is alarming, with significant financial losses reported. Legislative measures are being proposed to strengthen consumer protections, including licensing ATM operators and creating educational resources. AARP also offers support services to help scam victims.
Criminals are increasingly using cryptocurrency ATMs to perpetrate scams, particularly against older adults. Such machines, prevalent in retail locations, convert Bitcoin into cash and have surged in number from approximately 1,200 in 2017 to over 45,000 today. While facilitating legitimate transactions, these kiosks have become instruments of fraud, causing significant financial harm to unsuspecting consumers.
The Federal Bureau of Investigation (FBI) has observed a troubling trend in cryptocurrency ATM-related fraud, especially among seniors. In the first half of 2024, the Federal Trade Commission (FTC) reported $65 million in losses from scams involving these machines, with victims aged 60 and older accounting for $46 million. This figure could be much higher, given the underreporting associated with fraud cases. In 2023 alone, the FBI documented around 5,500 complaints, totalling $189 million in losses related to these schemes.
Fraudsters exploit these unregulated ATMs through various tactics, including romance scams and grandparent scams, leading to substantial financial losses. In response, AARP Massachusetts is advocating for legislative measures to enhance consumer protections within the state, building on existing laws. These proposed regulations include licensing ATM operators, implementing daily transaction limits, mandating the display of fraud warning notices, and establishing a commission to investigate blockchain technology.
AARP has achieved notable success in Vermont by passing similar consumer protection laws. This state now requires cryptocurrency kiosk operators to register and imposes a transaction cap of $1,000 per day. AARP’s commitment to combating fraud extends to educational outreach, providing resources to help consumers identify and avoid scams.
For ongoing education, AARP Massachusetts hosts “Fraud Talk Tuesdays” each month, where community members can learn about new scams. Additional resources are available through the AARP Fraud Watch Network, and those who have fallen victim to scams can seek assistance by calling the toll-free helpline at 877-908-3360. Help is available Monday to Friday from 8 a.m. to 8 p.m.
