Show of hands if you’ve heard of “Crypto Kiosk Fraud.” If not, here we go.
Crypto kiosks are similar to bank ATMs, allowing people to manage legal cryptocurrency transactions, such as sending money to digital wallets. (I have no idea what that is, but bear with me.) These kiosks, also known as “crypto ATMs,” “BTMs,” or “virtual currency kiosks,” can be found in bars, convenience and grocery stores, gas stations and restaurants. Currently, there are more than 45,000 crypto ATMs nationwide. However, because crypto ATMs are largely unregulated at the state level compared to traditional banks or other money service businesses, there’s no fraud protections. This enables criminals to use crypto ATMs to steal hundreds of millions of dollars from unsuspecting Americans each year through fraudulent purchase schemes. Naturally this fraudulent activity targets older folks.
In 2024, the FBI received nearly 1100 complaints involving crypto kiosks with reports of over $246.7 million in stolen funds. More than 85% of these thefts happened to adults over 60 years old, with the average amount stolen more than $40,000.
The scammers often impersonate government officials or businesses, usually convincing their target that in order to deal with a serious financial issue, they need to withdraw large amounts of cash and put that money into a crypto ATM. It is then transferred to a digital wallet controlled by these criminals.
“A digital wallet, also known as an electronic wallet, is a software application that stores your payment details and passwords, enabling seamless transactions on connected devices, chiefly mobile phones. By securely holding your financial data, digital wallets remove the necessity for physical wallets. You simply load your credit, debit, or bank account information into the application, allowing you to conduct purchases directly via your device without the need to carry physical cards.”
No thanks.
Anyway, cryptocurrency kiosks are not currently regulated here in New Hampshire. So, earlier this year SB 482 was passed in the State Senate. This bill is supported by NH Assoc. of Chiefs of Police, NH Atty. General’s Office, NH Legal Assistance, NH Commission on Aging and AARP (American Association of Retired People.)
What this bill does:
~Sets a $2,000 daily transaction limit.
~STOPS NH from being a TARGET for scammers. NH has seen hundreds of cases in recent years because there has been no limit on transactions.
~Allows victims 14 days to request a refund from the crypto ATM operator.
~Does not obstruct local control, nor is there a “safe harbor” clause.
The bill comes up for a vote in the House soon but with an added amendment by Republican Free Stater Rep. Keith Ammon. What does the amendment do?
Weakens the bill by stripping protections.
A few examples:
~There is no transaction limit after the “new customer” period has passed. (72 hours)
~No refunds on transactions made after “new customer” period has passed.
~ Unlike the original bill the amendment provides safe harbor for “compliant” operators from enforcement actions from NH Atty. General’s Office.
~ Explicitly prohibits cities and towns from passing more restrictive safeguards. More taking away of local control. However, the amendment does allow operators to enact their own stricter rules.
According to the NH Atty. General’s Office these kiosk scams are becoming widespread in NH. So rather than protect their constituents, the Republican Free Staters have opted to leave the door slightly open for scammers to continue to victimize the people of NH!