AARP Urges North Dakota Governor to Sign Bill Regulating Cryptocurrency Kiosks Amid $5.6 Billion in Scam Losses

Cryptocurrency kiosks, which resemble traditional ATMs, have become a growing concern due to their potential for fraudulent activities. These machines, often used for quick and convenient access to digital currencies, have been criticized for their lack of transparency and the ease with which they can be exploited by scammers. The American Association of Retired Persons (AARP) has taken a strong stance on this issue, urging North Dakota Governor Kelly Armstrong to sign House Bill 1447, a proposed legislation aimed at regulating these kiosks.

The bill seeks to address the risks associated with cryptocurrency kiosks by introducing several consumer protections. These include licensing requirements for kiosk operators, mandatory fraud warnings displayed on the machines, and printed receipts with transaction details for all users. These measures are designed to make transactions safer and more transparent, reducing the likelihood of fraud and protecting consumers, particularly older individuals who may be less familiar with digital currencies.

The urgency of this issue is underscored by the significant financial losses reported due to crypto-related scams. According to the FBI, Americans lost a staggering $5.6 billion to such scams in 2023, with North Dakota alone accounting for nearly $6 million of that loss. The scam playbook often involves fraudsters posing as law enforcement or tech support, instructing victims to transfer funds via crypto kiosks. Once the transaction is made, the money disappears into the blockchain void, making it virtually untraceable and unrecoverable.

Janelle Moos, advocacy director at AARP North Dakota, highlights the deceptive nature of these kiosks. "These machines look like ATMs, and so people are inserting their money, thinking it’s secure," she explained. "It gets transferred to a scammer’s digital wallet and the money’s gone. There’s no way to track it." This familiarity and trust in the appearance of these machines contribute to their effectiveness as tools for fraud.

The proposed legislation is seen as a necessary first step in building broader protections against the surge of crypto-driven fraud. If signed into law, North Dakota could set a precedent, leading the way for other states to tackle the growing vulnerability posed by these machines. AARP's advocacy is focused on protecting older North Dakotans, who are often less familiar with digital currency and more trusting of seemingly official instructions.

The debate over cryptocurrency kiosks reflects the broader challenges facing the digital currency industry. As the use of digital currencies continues to grow, regulators and lawmakers are grappling with how to balance the need for innovation with the need to protect consumers and prevent illegal activities. The push by AARP serves as a powerful reminder that the same technology promising decentralization and financial freedom can also serve as a tool for exploitation, unless clear, enforceable guardrails are put in place.

Governor Armstrong's decision now carries serious weight. Will North Dakota take a stand—and potentially become a model for responsible crypto oversight? One thing is clear: with millions already lost and more at stake, waiting any longer could mean more victims—and more heartbreak. The stakes are high, and the need for action is urgent. The outcome of this legislative effort will be closely watched, as it could set a precedent for how other states and regions approach the regulation of cryptocurrency kiosks and the protection of consumers in the digital age.