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Alaska, Other Western States Tackle Crypto Kiosk Fraud

New laws focus on consumer protections.

Christine Bedell,

AARP

Published November 01, 2026

Getty Images

Phylis Silverton of Wasilla, Alaska, was washing dishes one Saturday morning this year when a purported policeman from the state capital of Juneau called with frightening news: Her daughter had been injured in a suspected DUI crash and would remain jailed unless Silverton provided thousands of dollars for bail.

Then what she thought was her daughter’s voice, sounding upset, came on the line, saying, “I’m so sorry. I love you, Mom.”

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A man claiming to be an attorney called next with payment instructions. Silverton obtained an $8,000 credit card advance from her bank and then fed the money into a cryptocurrency kiosk at a grocery store, $900 at a time.

But Silverton’s daughter — Alaska state Sen. Cathy Tilton, a Republican from Wasilla — was never in any trouble. The voice appears to have been AI-generated — part of a scam that left the 82-year-old retiree with an $8,000 debt and likely no way to get her money back.

Because of stories like Silverton’s, AARP offices throughout the West have been — or will be — advocating for state regulation of crypto kiosks, which convert cash into digital currency like Bitcoin.

The FBI received more than 13,400 complaints involving cryptocurrency kiosks in 2025, with reported losses of nearly $390 million. More than half of complaints involved people older than 50, according to the FBI. Due to chronic underreporting, experts say true losses are far higher.

Scammers exploit the kiosks (also known as crypto ATMs) because “it’s very easy to get the money and it’s very difficult to track where it goes and get it back,” says Katie Severin, associate state director of communications for AARP Alaska.

Alaska and Hawai‘i approved crypto kiosk regulations this year that took effect Oct. 1. Hawai‘i’s law prohibits using cash at kiosks to purchase cryptocurrency but continues to permit crypto-to-cash or crypto-to-crypto transactions.

Alaska’s version — sponsored by Tilton — mandates that kiosk operators be licensed, display prominent fraud warnings, verify customer identities, provide transaction receipts, support law enforcement investigations, cap transactions at $1,000 per customer per day and give qualifying victims a path to refunds.

“Our seniors spent decades building this state,” says Tilton. “We owe them these protections.”

AARP Montana has made cryptocurrency kiosk legislation its top legislative priority in 2027 and will push for an outright ban or strict regulations, State Director Tim Summers says. He sees momentum building as other states adopt bans and Montana lawmakers embrace the proposal as a “tough on crime” measure.

“I think it caught a lot of states off-guard,” Summers says of growing crypto kiosk fraud. “But now they know, and they’re stepping up.”

AARP has pushed consumer-focused crypto kiosk legislation in statehouses across the country. As of early October, lawmakers had passed measures — warnings, daily limits and outright bans among them — in 35 states, according to an AARP tally.

You can learn more at aarp.org/cryptoATMs.