The Arizona Attorney General's Office announced Thursday the state's new Cryptocurrency Kiosk License Fraud Prevention law will go into effect, increasing protections for Arizona seniors at risk of cryptocurrency ATM scams.

The law will lower daily transaction minimums, increase warnings on the ATM, require transaction receipts, and ATM operators to issue refunds to victims of fraud. 

“Last year, Arizonans lost an astounding $177 million in their hard-earned savings to cryptocurrency scammers. This is a good first step, but we need to do even more to protect Arizona seniors from these persistent criminals," Attorney General Kris Mayes said in a release.   

Under the new law:  

• Daily transaction limits are reduced to $2,000 per day for new customers and $10,500 for existing customers 
• New warning signs must be displayed on the screen and customers will be required to acknowledge the warnings before proceeding  
• Kiosk and ATM operators will be required to issue full refunds, including fees, to new customers who report they have been victims of fraud within 30 days of the transaction 

Arizona has about 600 cryptocurrency ATMs across the state.

In 2024, the FBI reported a 99% increase in complaints of fraud involving cryptocurrency ATMs and more than two thirds of the victims of cryptocurrency ATM fraud were over 60 years old. They estimate Arizonans lost more than $177 million in cryptocurrency fraud that year.

This year, Scottsdale Police reported $5 million lost by residents due to cryptocurrency scams, and last year families in Peoria lost nearly $1 million, accrding to the release.

Scammers like to request crypto because it lacks many of the same protections that other payment forms provide and is hard to trace once the money is sent. 

Mayes has issued consumer alerts to protect Arizonans from cryptocurrency scams. She also partnered with Yavapai County Sheriff David Rhodes to post "STOP" signs on bitcoin ATMs to warn anyone who is going to use the machine or ATM in response to a scam contact to cease their purchase of Bitcoin or other types of cryptocurrency if they have been instructed to purchase it by someone they do not know and have never met in person.  

Mayes provided the following tips to protect yourself from cryptocurrency scams:    

• Verify Information: Before taking any actions, hang up, and independently verify the legitimacy of the caller by directly contacting the organization they claim to represent. Never use the contact details they provide — call whoever they claim to represent directly. Scammers can mask numbers making it appear that a legitimate company or organization is calling you.
• Be Skeptical: Always be skeptical of unsolicited calls, especially those asking for immediate action involving financial transactions. A government agency will never ask you to remove money from your accounts to send via bitcoin, wire transfer or gift cards. 
• Only Scammers Demand Payment in Cryptocurrency:  No legitimate business is going to demand you send cryptocurrency in advance — not to buy something, and not to protect your money. That’s always a scam. 
• Secure Your Personal Information: Never share personal information like your social security number, bank account details, or passwords over the phone with unknown callers or give anyone real-time access to your computer. Never click on a link from an unexpected text, email, or social media message, even if it seems to come from a company you know. 
• Consult Trusted Individuals: Always consult with a trusted family member or friend before making any substantial financial decisions, especially those involving digital currencies like bitcoin.
• Report Suspicious Activity: If something feels off, it probably is. Report the call to local law enforcement and file a complaint with the Arizona Attorney General’s Office.