By Jennifer Benson, AARP Massachusetts State Director
Criminals have found a new way to steal your money. Like everything else, they’ve gone high tech. They’re using crypto ATMs to get your money.
Fraud criminals steal billions of dollars from unsuspecting consumers every year. The impact on victims and their families can be financially and emotionally devastating, especially for older adults. Knowledge gives you power over scams. The AARP Fraud Watch Network equips you with reliable, up-to-date insights, and connects you to our free fraud helpline so you can better protect yourself and loved ones.
Cryptocurrency kiosks, often seen in supermarkets, convenience stores, gas stations, and even laundromats, have become a common sight across the country. These machines convert real dollars into crypto dollars. They’ve grown in number from about 1,200 at the end of 2017 to over 45,000 today. While they offer a legitimate service, they have also become a favorite tool for scammers, leading to significant financial losses, especially among older adults.
The rise in cryptocurrency ATM fraud is alarming. According to the Federal Bureau of Investigation (FBI), these schemes have increased, with many victims being older adults. In the first half of 2024 alone, the Federal Trade Commission (FTC) received reports of fraud losses through Bitcoin ATMs totaling $65 million, with $46 million reported by victims aged 60 and older. The actual amount stolen is likely much higher, as fraud is notoriously underreported. The FBI received 5,500 complaints in 2023, reporting $189 million in losses.
Scammers often use these unregulated ATMs in various schemes; everything from romance scams to grandparent scams. They trick victims into depositing cash, stealing hundreds of millions annually.
In Massachusetts, AARP is backing legislation that aims to strengthen consumer protections in the state, which already boasts some of the strongest consumer protection laws in the country. The proposed measures include licensing cryptocurrency ATM operators, imposing daily transaction limits, posting visible fraud warning notices, creating a special commission to study blockchain technology, and ensuring residents have access to educational materials to manage their finances and safeguard their financial well-being.
AARP successfully fought to introduce and pass similar protections in Vermont. Vermont now requires cryptocurrency kiosk operators to register with the state and has a daily transaction limit of $1,000, among other measures.
AARP has a long history of fighting fraud that targets older Americans and of equipping consumers with information and resources to better protect themselves. The AARP Fraud Watch Network can help people learn to spot and avoid scams. AARP Massachusetts holds Fraud Talk Tuesdays once a month where we break down the latest scams and how to protect yourself. You can find more information at aarp.org/mafraud. If you have become a victim of a scam, you’re not alone. There’s help at the AARP Fraud Watch Network Helpline: 877-908-3360. Our toll-free service is available Monday through Friday, 8 a.m. to 8 p.m. Our fraud specialists provide free support and guidance on what to do next.
Jennifer Benson is the State Director for AARP Massachusetts.
RELATED CONTENT:
Explore AARP volunteer opportunities
Helping make Massachusetts even more livable
New Year, New Job: AARP Helps 50-plus Workers in Massachusetts
