In a landmark push for consumer protection, 11 U.S. states have enacted new laws or regulations to kerb rampant fraud involving cryptocurrency ATMs, a crime wave that cost Americans more than $246 million in 2024 alone. Spearheaded by the advocacy of AARP, these new measures are aimed at protecting vulnerable populations particularly older adults, who accounted for over 67% of reported victims from increasingly sophisticated scams.
“Criminals are disproportionately targeting older Americans through crypto ATM scams,” said Nancy LeaMond, Executive Vice President and Chief Advocacy and Engagement Officer at AARP. “We’re proud to have helped pass these laws that will better protect millions of people nationwide from having their hard-earned money stolen.”
Crypto ATM machines that resemble traditional bank ATMs allow users to conduct legitimate cryptocurrency transactions, such as transferring funds to digital wallets. But their unregulated nature in many states has made them ripe for exploitation. With more than 45,000 such machines installed across the country, scammers have found fertile ground for targeting unsuspecting users, especially seniors unfamiliar with the risks.
Widespread Losses, Local Action
According to the FBI, more than 11,000 people filed complaints related to crypto ATM fraud in 2024. These scams frequently involve impersonation schemes in which victims are coerced into sending money via cryptocurrency ATMs, often under false pretences involving government agencies or emergency family situations. The result: a staggering $246 million in reported losses, much of it unrecoverable due to the anonymity and finality of crypto transactions.
States are now stepping up. The wave of legislation, enacted with AARP’s guidance and bipartisan support, introduces critical safeguards to the previously unregulated crypto kiosk industry. Among the key protections are transaction limits, mandatory ATM registration, anti-fraud disclosures, and protocols for issuing refunds in cases of confirmed scams.
“In state after state, AARP found lawmakers on both sides of the aisle and local law enforcement eager to work on commonsense rules that balance innovation and consumer safety,” LeaMond said.
Illinois and Nebraska Lead the Way
In Illinois, the newly passed law includes strict consumer safeguards that will be implemented statewide. “Consumers at crypto ATMs will be protected by transaction limits, required ATM registration, guidelines on refunds after fraud, and more,” said AARP Illinois State Director Philippe Largent. “We’re committed to staying on top of this issue and other modern-day fraud trends to ensure that our 1.7 million members in Illinois, and all older adults and their families, are not robbed of their hard-earned money.”
Nebraska has also emerged as a frontrunner in crypto consumer protection. Its law, which was approved on March 6 and is set to take effect in September, could serve as a national blueprint. “Nebraska’s new law is hopefully a model for other states and perhaps even one day the nation,” said AARP Nebraska State Director Todd Stubbendieck. “We know this law is greatly needed, and we expect it will have a significant impact in helping to deter crypto ATM fraud.”
Towards a National Response
While the recent state-level victories mark a major step forward, AARP warns that the work is far from over. Many states still lack basic consumer protections for crypto ATM users, leaving countless Americans exposed to evolving scam tactics.
AARP continues to push for comprehensive safeguards across the nation, working with state, county, and local governments to close the remaining gaps. The organisation’s efforts are not only helping to shape immediate protections but also laying the groundwork for future national regulation.
“As scammers become more inventive, we must be even more proactive,” said LeaMond. “These new laws show what’s possible when public interest, technology, and bipartisan policymaking come together. Now, we must ensure these protections reach every corner of the country.”
With crypto adoption on the rise and fraud techniques becoming increasingly sophisticated, the recent wave of legislation signals that the fight against financial exploitation is entering a new, more vigilant era, one led by empowered communities and organisations demanding action.
