Kansas Advances New Protections to Help Stop Financial Exploitation and Crypto Scams

Kansas Advances New Protections to Help Stop Financial Exploitation and Crypto Scams

Financial exploitation and fraud are growing concerns for Kansas families, especially as criminals increasingly rely on fast moving digital payment methods. During the 2026 legislative session, Kansas lawmakers approved and Governor Kelly signed House Bill 2591, a wide ranging consumer protection measure that strengthens safeguards against financial exploitation and adds new protections for people using cryptocurrency kiosks, often called crypto ATMs.

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AARP Kansas supported key provisions of the bill and worked alongside the Credit Union Association, Kansas Bankers Association, and other interested stakeholders to strengthen consumer focused language—particularly in the sections addressing cryptocurrency related fraud.

Helping Stop Financial Exploitation Earlier

HB 2591 gives financial institutions new tools to respond when they reasonably believe an adult may be targeted by financial exploitation. The bill defines financial exploitation broadly, including misuse of a power of attorney, identity theft, coercion, and fraud for another person’s benefit.

Under the new law, a bank or credit union may, in good faith and with reasonable cause:

• Report suspected financial exploitation to law enforcement or the Kansas Department for Children and Families
• Notify a trusted contact chosen in advance by the account holder
• Report and hold a transaction when there is concern that the transaction could further financial exploitation

These steps are designed to help stop losses before they happen—especially important when fraud involves urgent demands for payment.

At the same time, the bill includes safeguards to protect individual rights. A temporary transaction hold cannot be based solely on a person’s age, and a trusted contact does not gain authority to act on or control an account.

New Guardrails for Cryptocurrency Kiosks

HB 2591 also creates the Virtual Currency Kiosk Consumer Protection Act, responding to the increasing use of cryptocurrency kiosks in fraud schemes. These machines are often used by criminals because transactions can be fast and difficult to reverse.

The law adds multiple consumer protections, including:

• Clear, on screen fraud warnings that must be acknowledged before a transaction
• Disclosure of risks, including that cryptocurrency is not government backed and transactions may be irreversible
• Live customer service during kiosk operating hours
• Identity verification for each transaction
• Detailed receipts showing fees, exchange rates, and other transaction information