The AARP has voiced its support for Senate Bill 5280 in Washington State, aimed at enhancing regulation of cryptocurrency kiosks. This comes as a response to a troubling increase in scams associated with these devices, particularly involving technology support fraud, extortion, and impersonation schemes. Victims often find themselves tricked into withdrawing cash and purchasing cryptocurrency via these kiosks, sending funds directly to scammers, with transactions being irreversible and leaving little hope for recovery.
Cathy MacCaul, AARP’s Advocacy Director, emphasized the profound impact of such fraud, stating, “Fraud devastates victims and families—financially and emotionally.” The organization highlighted that in 2024, the FBI received nearly 11,000 complaints regarding crypto kiosks, resulting in reported losses around $246.7 million, with a striking 85% of these losses affecting individuals aged 60 and older. The emotional toll related to financial fraud is significant for victims and their loved ones.
Senate Bill 5280 proposes several protective measures, including a daily transaction limit of $1,000, restrictions on transaction fees, the requirement for paper receipts, and the installation of clear scam warnings on kiosks. Proponents of the bill believe these precautions will not only deter fraudulent activities but also aid law enforcement efforts. This regulatory push mirrors initiatives from at least 18 other states where similar controls have been established to enhance consumer protection specifically for vulnerable populations.
As seen in states like Maryland, Vermont, and Alabama, the growing movement towards stricter regulations on cryptocurrency kiosks reflects a heightened awareness of the risks associated with such financial instruments, aiming to create a safer environment for all users. This proactive approach could significantly mitigate the threats posed by scams and build stronger trust in the cryptocurrency landscape.