The latest scam tool that international criminal gangs use to take money from kūpuna is likely in your neighborhood supermarket or convenience store.
Bitcoin ATMs, which look similar to bank ATMs, have become commonplace sitting next to regular ATMs, alongside the DMV registration machine and video rental box. There are nearly 100 of them in Hawai‘i and more keep getting added.
The FBI said that reported crimes involving cryptocurrency ATMs almost doubled last year with nearly 11,000 complaints and losses of about $247 million in 2024.
The scammers target kūpuna who may not be familiar with bitcoin and cryptocurrency. The Federal Trade Commission says people 60 and older are three times more likely to report being a victim of cryptocurrency ATM fraud.
The scams often involve a phone call from a fake government or bank official who convinces the consumer that their money is in danger and they need to transfer it to a safe place. Sometimes they call cryptocurrency ATMs a “federal safety locker.” Sometimes it’s a variation of the grandparents or romance scams; the consumer is told to pay into a cryptocurrency ATM to get their grandchild out of jail or to invest in cryptocurrency by someone they have been persuaded to trust.
What can be done?
AARP Hawai‘i is pushing for commonsense legislation to limit cryptocurrency ATM transactions to $2,000 per visit, which could limit fraud losses. We’re also lobbying for better fraud warnings and in some cases refunds to consumers.
Be aware that only scammers demand payment with cryptocurrency. The government never accepts cryptocurrency. Also, if you see someone, especially kūpuna, feeding money into a crytocurrency ATM who looks distressed and may be on the phone with someone directing them, let store authorities or even the police know.
If you have been a victim of cryptocurrency ATM fraud or know someone who has lost money, let AARP Hawai‘i know by emailing us at the address below. We need to educate lawmakers about this fraud trend and hearing from constituents will help us pass legislation that could save kūpuna from losing their life savings.
AARP HAWAI‘I (nonprofit)
1001 Bishop St., Ste. 625, Honolulu, HI 96813
866-295-7282 | hiaarp@aarp.org
aarp.org/hi | facebook.com/aarphawaii
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