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New Legislation will Protect Older North Dakotans from Criminals who use Crypto ATMs to steal

Posted on 01/22/25

Scams involving cryptocurrency ATMs are on the rise—and AARP North Dakota is urging lawmakers to take action this legislative session. North Dakota House Bill 1447, sponsored by Fargo Rep. Steve Swiontek (R-10), will create important consumer protections to save older North Dakotans from having their life savings stolen by criminals.

What Are Cryptocurrency ATMs?
Cryptocurrency ATMs, also known as “crypto kiosks” or “virtual currency kiosks,” can be found in supermarkets, convenience stores, gas stations, bars, and restaurants. Crypto ATMs look like bank ATMs and allow people to conduct legitimate financial transactions, such as buying or selling cryptocurrency.

However, because crypto ATMs are largely unregulated at the state level compared to traditional financial institutions and money service businesses, they lack sufficient consumer fraud protections. As a result, criminals are exploiting crypto ATMs to steal hundreds of millions of dollars from Americans each year through fraudulent purchase schemes.

Perpetrators convince individuals that they must address an urgent financial matter, directing them to withdraw large amounts of cash from their banks. The individual then inserts that money into a crypto ATM via a digital QR code, and it’s transferred to the criminal.

In 2023, the FBI received over 5,500 complaints involving crypto kiosks, and Americans reported over $189 million in stolen funds. Fraud is significantly underreported, so the amount stolen is likely far higher. In North Dakota, more than $6 million was stolen through cryptocurrency fraud in 2023.

Pass Legislation to Deter Criminals From Using Crypto ATMs to Steal from Older North Dakotans
AARP supports legislation that will deter criminals from using crypto ATMs for fraudulent activity and establish important consumer protections. HB 1447 includes provisions to:

  • License cryptocurrency ATM operators in the state
  • Impose daily transaction limits to avoid potential risks associated with higher transactions
  • Post fraud warning notices that are visible and identify steps people should take if they suspect fraudulent activity
  • Clearly display terms and conditions before a transaction, including any fees charged and the exchange rate
  • Give paper receipts with relevant transactional information, which allow law enforcement to investigate immediately
  • Require cryptocurrency operators to refund ATM fees for transactions related to fraud

Join AARP ND’s Fight Against Fraud
As part of its ongoing efforts to fight against fraud, AARP ND strongly supports HB 14447 and urges state lawmakers to pass it this session.

Your voice matters! Contact your legislators today. Tell them to stop criminals from using cryptocurrency ATMs to steal older North Dakotans retirement savings. Take action here.

This story is provided by AARP North Dakota. Visit the AARP North Dakota page for more news, events, and programs affecting retirement, health care, and more.

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