AARP Warns Consumer Protections at Risk as Crypto Kiosk Industry Pushes Back on Anti Scam Bill

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Seattle, WA — The future of Senate Bill 5280, bipartisan legislation designed to protect Washington residents from crypto-kiosk scams, is increasingly uncertain as the crypto‑kiosk industry mounts aggressive opposition to common‑sense consumer safeguards - despite mounting evidence that these machines are being used to siphon millions of dollars from fraud victims, particularly older adults.

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Dan Maul of Oak Harbor, a former investment adviser and AARP Fraud Watch volunteer, is urging lawmakers not to be swayed by industry pressure. Maul warned that crypto kiosks have become one of the most effective tools scammers use to extract cash from victims, with little accountability and virtually no path for recovery.

“In my work with fraud victims, I routinely see people instructed by scammers to withdraw large sums of cash and deposit it into crypto kiosks,” said Maul. “While these kiosks can be used legitimately, the companies that operate them have largely failed to put meaningful safeguards in place to deter fraud - while generating substantial profits through high fees.”

Crypto kiosks - also known as “crypto ATMs,” “bitcoin ATMs,” or “BTMs” - are commonly found in supermarkets, convenience stores, gas stations, and restaurants. In tech support, extortion, and government impersonation scams, criminals direct victims to convert cash into cryptocurrency and transfer it to a scammer’s digital wallet. Because cryptocurrency transactions are untraceable, victims rarely recover their money.

Older adults are disproportionately harmed. In 2024, the FBI received 10,956 complaints involving crypto kiosks, with reported losses totaling $246.7 million. Adults age 60 and older accounted for 85% of those losses.

“Fraud devastates victims and families - financially and emotionally,” said Cathy MacCaul, AARP Advocacy Director. “Senate Bill 5280 would put basic guardrails in place to prevent predictable and preventable harm. Unfortunately, those protections are now at risk because the crypto‑kiosk industry is prioritizing profits over consumer safety.”

Industry representatives have argued that consumer protections - such as transaction limits, fee caps, and scam warnings - would harm their business model or amount to a de facto ban on kiosks. MacCaul rejected those claims, noting that a similar law took effect in California on January 1, 2024. According to data from the California Department of Financial Protection and Innovation, more than 4,600 crypto kiosks are currently operating in the state under its regulatory framework.

“There is no empirical evidence that SB 5280 would function as a ban,” MacCaul said. “To the contrary, the industry appears to be thriving in California under regulations that are even more stringent than what is being proposed here in Washington.”

Senate Bill 5280 has passed the Senate and now awaits action in the House Consumer Protection and Business Committee. MacCaul said AARP members from every corner of the state have been flooding committee offices with messages urging swift approval. “Our members understand what’s at stake,” MacCaul said. “In just the past few weeks, they have sent more than 3,000 emails and made dozens of phone calls to committee members, asking them to stand up for Washington consumers.”