Arizona has taken decisive action to protect older adults from the growing threat of cryptocurrency ATM scams by passing a new law that enacts stronger regulations on these machines. Cryptocurrency kiosks—often found in gas stations, grocery stores, and convenience stores—enable users to buy digital currencies like Bitcoin with cash or debit cards and send them directly to crypto wallets. While marketed as a convenient and private way to purchase cryptocurrency, scammers have increasingly exploited these machines in recent years.

Scammers frequently target seniors by tricking them into sending large sums of money through these ATMs, claiming there is an urgent financial problem to resolve. The transactions, once completed, are usually irreversible, resulting in significant financial losses for victims. Data shows a sharp rise in fraud losses involving crypto kiosks, with millions lost nationwide as scammers capitalize on the anonymity of cryptocurrency.

In response, Arizona’s new legislation introduces several key safeguards. Crypto ATM operators are now required to provide clear warnings about possible scams, issue transaction receipts, and set daily transaction limits to restrict large cash outflows. Operators must also offer refunds for transactions proven to be fraudulent, giving victims a potential path to recover their funds. These measures aim to support consumer protection, especially for older adults most vulnerable to these fast-evolving scams.

Arizona joins a growing list of states working to regulate crypto ATMs and reduce their misuse, seeking a balance between supporting digital currency innovation and preventing criminal exploitation. The new law is a significant step in empowering consumers and deterring fraudsters who prey on confusion about cryptocurrencies.