Crypto ATM Scams Cost Arizonans $177M as Attorney General Begins Crackdown ⋆ ZyCrypto

Arizona Attorney General Kris Mayes has issued a warning against bad actors involved in crypto ATM fraud. This comes as losses to scammers compound in the sector, especially among older adults. According to FBI data, about 43% of victims are above 60 years old. 

Arizona’s AG Launches New Complaint Form

Mayes stressed the risk posed by crypto kiosks amid the growing adoption of digital asset products. There are over 600 crypto ATMs in the state, making it a source for bad actors to direct unsuspecting victims. 

The Attorney General rolled out a new complaint form for victims in the state to report crypto ATM scams within 30 days. Quick reporting is vital in the recovery of lost assets, with Mayes warning against transfers to unknown persons.

Arizona lost approximately $177 million annually to bad actors engaged in these fraud schemes. She urged caution when using crypto ATMs, warning that if someone is prompted to use these kiosks, there’s a high likelihood of a scam. 

In the release, she explained that the scam may take several forms, including pig butchering, unsolicited calls, etc. Victims may be contacted regarding legal issues, banking matters, outstanding debt, etc. Thereafter, frequent communication is established, loved ones are impersonated, and victims are urged to send funds via crypto ATMs. 

“Crypto ATMs look like bank ATMs and are increasingly located in gas stations, grocery stores, and other retailers. Arizona has approximately 600 cryptocurrency ATMs across the state. 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,” she added. 

Last year, the state enacted new laws to protect the community from Bitcoin ATM scams. The regulation essentially capped the daily transaction limits, increased warnings, and required a transaction receipt. Currently, daily limits are $2,000 for new customers and $10,500 for older customers. 

ATMs are also mandated to issue full refunds to new customers who report a fraud case within 30 days. Furthermore, warning signs are also displayed before users can transact with these machines. United States authorities have doubled efforts to protect investors against crypto scams. 

However, incidents are on the rise with bad actors deploying new techniques utilizing AI tools. The same trend is evident globally following the widespread adoption of the asset class.