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Taking Aim at Crypto ATM Scams in South Carolina

With the 2026 legislative session underway, consumer protection advocates are considering policy proposals to help regulate cryptocurrency ATMs, which scammers use to steal money.

Linda Lamb,

AARP

Published March 01, 2026

photo illustration with computer circuitry and the word crypto

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In October 2024, retired minister Louis Vellia Jr. received an alarming email claiming someone had purchased Bitcoin using the bank debit card tied to his PayPal account.

Through a series of online and phone interactions, the 72-year-old Beaufort County resident was directed to “reimburse” PayPal by withdrawing cash from his bank and feeding it into a cryptocurrency ATM at a nearby convenience store.

At first, “everything sounded normal — the email, you know, was perfect. I had no reason to believe it was not,” he says. But the next day, the bank alerted him to irregular account activity.

Vellia reached out to local law enforcement, his insurance agent and state agencies. None could help. His $10,000 was gone.

From January through November 2025, South Carolinians reported losing $18.5 million to scams involving crypto ATMs, according to the state Department of Consumer Affairs. To help combat the problem, AARP South Carolina is planning fraud education events, as well as urging state lawmakers to pass legislation to regulate the use of crypto ATMs like the one Vellia used.

The machines, which convert cash into digital currencies such as Bitcoin, have become an increasingly popular tool for scammers to steal people’s money. Crypto ATMs, which can be found in gas stations, supermarkets and other businesses, can resemble traditional bank ATMs. But in a crypto transaction, money is typically transferred overseas almost immediately, making it difficult for law enforcement to recover the funds, according to the FBI.

Crypto ATMs fall in line with other payment methods favored by criminals, such as gift cards, says Carri Grube Lybarker, administrator of the state consumer affairs agency. “It’s like sending cash that you won’t be able to get back,” she says.

Weighing Legislative Options

With the 2026 legislative session underway, consumer protection advocates are considering policy proposals to help curb crypto ATM-related fraud.

Grube Lybarker — who received input from AARP South Carolina and law enforcement officials — says the consumer affairs agency would favor legislation that mandates state licensing of crypto ATMs, caps daily transactions at $1,000 and requires transaction receipts, among other protections. Transaction receipts, she notes, could help law enforcement trace stolen funds.

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Nationally, at least 17 states have passed laws to regulate the machines, with AARP playing a leading role in pushing for protections in most of those states. The laws include various provisions, such as setting daily transaction limits, mandating that fraud warning signs be posted near machines and requiring that ATM operators be licensed by the state.

In 2024, Americans reported $247 million in crypto ATM-related losses—a 31 percent increase from the year prior, according to the FBI. Among the cases in which the age of the victim was known, individuals over 60 accounted for 86 percent of the losses, data shows.

While crypto ATMs are a relatively new technology, the scams that ensnare people are familiar: someone posing as a government agent warning of arrest if a fine isn’t paid, a loved one in dire straits pleading for money, a potential suitor touting an investment opportunity.

Scammers chat with their targets throughout the process, Grube Lybarker says. They don’t give the “consumer an opportunity to step back and think about it or talk about it with a loved one, a neighbor or some other trusted source,” she says.

Detective David Paramore of the Greenville Police Department, who is also a financial crimes task force officer with the U.S. Secret Service, says that while recouping money lost to a crypto crime is rare, reporting the fraud right away is important.

“No guarantee, but our solvability factors do go up,” Paramore says.

His department places posters warning about fraud at crypto ATMs, and he prioritizes “leading with empathy and understanding” with victims. “We are not here to judge,” he says.

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Linda H. Lamb is a Michigan-based freelance writer who contributes AARP articles on public health, veterans’ issues, legislative developments, and community initiatives.