Criminals have found a new way to steal millions of dollars from older Americans. During this year’s legislative session, our elected officials in Rhode Island will have the opportunity to address this issue and help to protect our vulnerable community members by taking action to stop them.
Cryptocurrency ATMs, also known as “crypto kiosks” or “virtual currency kiosks,” allow people to conduct legitimate cryptocurrency transactions. Unfortunately, these machines are being used by criminals to perpetrate fraud. In 2023, the FBI reported over 5,500 cases involving crypto ATMs, leading to an alarming total of $189 million stolen across the country. And, many individuals do not report being scammed, leaving even more victims unrecognized. It is crucial that we come together to support those at risk and work towards solutions that ensure their safety and security.
There are over 20,000 cryptocurrency ATMs across the United States, and at least nine are located in Johnston. The way it works is that perpetrators convince individuals that they must address an urgent financial matter, directing them to withdraw large amounts of cash—sometimes tens of thousands of dollars—from their bank and insert the money into a cryptocurrency kiosk via a digital QR code. It is then transferred to the criminal-and not refundable once you realize that you have become a victim of fraud. These criminals can be remarkably cunning, often manipulating even the most knowledgeable individuals. By recognizing their tactics, we can empower ourselves and others to respond with clarity and resilience, fostering a stronger sense of awareness and support in our communities.
As part of its ongoing efforts to fight fraud, AARP Rhode Island supports House Bill 5121 and Senate Bill 16. This important legislation aims to deter criminals from using crypto ATMs for fraudulent activities by creating essential safety measures and consumer protections. This legislation will set daily transaction limits for crypto kiosks and require the posting of fraud warning notices, advising individuals on how to respond if they suspect fraudulent activity.
Older Rhode Islanders have worked hard to save for a secure retirement. Call or write your legislators today and tell them to support House Bill 5121 and Senate Bill 16-the Crypto ATM Regulation bill. We’re counting on our lawmakers to ensure our savings remain where they belong and not in a criminal’s digital wallet.
Marianne Kelly, Co-Lead
AARP RI Fraud Watch Volunteer Team
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