AARP is actively combatting fraud involving cryptocurrency ATMs, which are increasingly exploited by scammers, causing significant financial harm, particularly to older adults. The AARP Fraud Watch Network provides resources and support, including educational materials and a helpline. Proposed legislation in Massachusetts aims to enhance consumer protections, in line with successful measures implemented in Vermont.
Criminals have adapted to utilise technology for fraud, notably through crypto ATMs. These devices, designed to convert traditional currency into cryptocurrency, are increasingly being exploited by scammers, leaving consumers vulnerable, particularly older adults, with financial and emotional scars. The AARP Fraud Watch Network aims to empower individuals by providing vital insights and a free fraud helpline to help protect against scams.
The proliferation of cryptocurrency kiosks has surged dramatically, from roughly 1,200 in 2017 to over 45,000 currently across various locations such as grocery stores and gas stations. Despite offering legitimate services for crypto transactions, these machines have become a primary tool for scammers, leading to severe financial repercussions for unsuspecting individuals, particularly seniors.
The rise of fraudulent activities linked to cryptocurrency ATMs is troubling. The FBI reports an increase in scams, with 5,500 complaints and losses exceeding $189 million in 2023, alongside FTC figures indicating that older adults reported $46 million in Bitcoin ATM-related losses alone in 2024’s first half. The overall financial impact is presumed even greater due to pervasive underreporting.
Scammers exploit these unregulated machines in diverse schemes, including romance and grandparent scams, tricking victims into unwittingly depositing cash and incurring massive losses yearly. In Massachusetts, the AARP is advocating for legislation aimed at enhancing consumer protections, which includes licensing operators, establishing daily transaction caps, and promoting educational resources on financial literacy.
Previous success in Vermont has led to new laws requiring kiosk operators to register and limiting transactions to $1,000 per day. AARP’s commitment to combating fraud targeting older adults is longstanding, and they provide resources through the AARP Fraud Watch Network, which offers monthly events like Fraud Talk Tuesdays focused on current scams. Victims are encouraged to seek support through their helpline at 877-908-3360.
Jennifer Benson serves as the State Director for AARP Massachusetts, championing these protective measures against fraud, especially for the elderly population.
