Arizona’s Crypto ATM Rules Aim to Shield Seniors from $177M Scam Wave

Arizona Enforces New Rules Targeting Crypto ATM Scams to Protect Consumers

Arizona has implemented stringent regulations for Bitcoin ATMs to combat a surge in cryptocurrency-related fraud, particularly targeting seniors. Effective immediately, the state’s Cryptocurrency Kiosk License Fraud Prevention law caps daily transactions at $2,000 for new users and $10,500 for existing account holders, a significant reduction from prior limits. The law also mandates clear warning signs at ATMs, requiring users to acknowledge scam risks before proceeding with transactions. Operators must provide detailed receipts, including transaction data, fees, and refund terms, to enhance transparency .

The FBI reported a 99% increase in cryptocurrency ATM fraud complaints in Arizona in 2023, with victims over 60 years old accounting for the majority of cases. Statewide losses reached $177 million, including $5 million in Scottsdale and nearly $1 million in Peoria. Arizona Attorney General Mayes emphasized that scammers exploit the pseudonymous nature of crypto transactions, making funds difficult to trace once transferred. The new rules aim to create a "critical defensive layer" for residents, balancing innovation with consumer protection .

Governor Katie Hobbs signed House Bill 2387, which further tightens ATM regulations. The law requires multilingual warnings about common scams, 24/7 toll-free customer service, and a 30-day refund policy for new users reporting fraud. Operators must also include digital wallet addresses on receipts to ensure accountability. These measures align with AARP Arizona’s advocacy for safeguarding vulnerable users from unregulated kiosks .

The state’s legislative approach reflects a cautious stance on broader crypto adoption. Hobbs rejected two proposals: a Digital Assets Strategic Reserve Fund and a bill allowing crypto tax payments. She cited market volatility as a risk to public funds, stating that existing laws already permit limited crypto usage without exposing taxpayers to losses. However, she approved House Bill 2749, which updates unclaimed property laws to retain cryptocurrencies in their original form rather than converting them to fiat .

Arizona’s actions mirror a national trend, with 26 U.S. states considering similar crypto reserve bills. While Hobbs’ approach prioritizes risk mitigation, the state’s ATM regulations set a precedent for consumer-focused safeguards. The Arizona Attorney General’s Office has also partnered with local law enforcement to raise awareness, including placing “STOP” signs on ATMs to intercept potential victims before transactions occur .

The new rules come amid growing scrutiny of crypto scams. University of Texas at Austin finance professor John Griffin described the issue as an “epidemic,” noting that scammers exploit the lack of traditional banking safeguards. With 20 active Bitcoin ATMs in Arizona, the state’s measures aim to reduce fraud while maintaining access to digital assets for legitimate users .