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A bitcoin kiosk machine at Pioneer Place shopping mall in downtown Portland, Oregon. Alamy Stock Photo Facebook Twitter LinkedIn

Machines that exchange cash for cryptocurrency, known as crypto kiosks, are popping up in supermarkets, convenience stores, gas stations and other spots across the country. But these ATM

look-alikes are prime vehicles for scams that often target older adults.

To combat this growing problem, AARP is advocating for state laws that regulate crypto kiosks and safeguard consumers. So far this year, we’ve helped establish laws in Nebraska. We’re also

working with lawmakers in 17 other states — Arizona, Arkansas, Colorado, Florida, Hawaii, Illinois, Iowa, Maryland, Massachusetts, New Jersey, North Dakota, Oklahoma, Rhode Island, South

Carolina, Texas, Vermont and Washington — to either draft or pass bills that adopt our expert recommendations, which include daily transaction limits, state operator license requirements,

scam warnings, refund options for losses due to fraud, plus others.

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In Nebraska, the legislation that adopted much of AARP’s model recommendations was signed into law on March 12. The law now requires $2,000 transaction limits on deposits and withdrawals

plus full-refund options for new customers. It also requires crypto ATM operators to hold state money transmitter licenses, post fraud warning notices on their machines and issue transaction

receipts for traceability, among other measures.

“This is a significant victory for Nebraskans and law enforcement,” said Todd Stubbendieck, state director of AARP Nebraska, in a statement on the governor’s signing. “With stronger

protections against cryptocurrency theft, we are better equipped to safeguard Nebraskans’ hard-earned life savings, especially for those aged 50 and older, from financial exploitation.”

Stakeholders lobby for LB609 in Nebraska. (Left to right) Jina Ragland, AARP Nebraska; Todd Stubbendieck, AARP Nebraska; Josh Planos, Better Business Bureau; Cindy Koenig-Warnke, Lincoln

Police Department; Senator Eliot Bostar, Nebraska Legislature; Sheriff Aaron Hanson, Douglas County Sheriff’s Office; June Ryan, AARP Nebraska; and Dexter Schrodt, Nebraska Independent

Community Bankers. AARP Nebraska

In other states, AARP is fighting for similar protections. In North Dakota, for example, we’re urging the passage of House Bill 1447, which would also limit the amount a customer can deposit

or withdraw to $2,000 per day and order ATM operators to provide a customer service line during certain hours, among other measures. And in Washington, which already requires state

licensing for crypto ATMs and some signage that warns of scams, we’re advocating for Senate Bill 5280, which would up the reporting and record-keeping requirements of those with licenses to

improve oversight, among other measures.

“Cryptocurrency fraud has taken a quantum leap in recent years,” said Josh Askvig, state director of AARP North Dakota, during a Jan. 22 committee hearing on North Dakota’s bill. The

proposed legislation, he said, “will create important consumer protections to save older North Dakotans from having their hard-earned money, sometimes their life savings, stolen by criminals

misusing crypto kiosks.”

How crypto ATM scams work