AARP: WI needs strong laws to stop crypto criminals from stealing in our local businesses

Criminals have found a new way to steal millions of dollars from older Wisconsinites. Before lawmakers adjourn this current legislative session, they have an opportunity — and we believe an obligation — to stop them.

There are more than 700 cryptocurrency ATMs, also known as “crypto kiosks” or “virtual currency kiosks” already located in convenience stores, gas stations, grocery stores, restaurants, and other locations across Wisconsin. Investigations conducted by bipartisan attorneys general have shown that more than nine in 10 uses of these crypto ATMs are fraudulent.

In fact, in 2024 victims reported losing a total of $246.7 million via crypto ATMs — a 31 percent increase from 2023, according to the FBI. Among the crimes where the victim’s age was known, 86 percent of the losses occurred among Americans over 60.

And that’s just the tip of the iceberg. Many victims never report being scammed out of embarrassment of shame. They may also feel that the law won’t protect them anyway. Right now it doesn’t, and lawmakers have a chance to make it right.

Here’s how these criminal schemes work. An unknown phone call or text message, often sourced from a foreign call-center, warns of an urgent financial matter. Victims are manipulated to withdraw large sums of cash — sometimes tens of thousands of dollars — from their banks and deposit it into a cryptocurrency kiosk. Once the money is transferred, it’s usually gone for good.

As part of our ongoing efforts to fight fraud, AARP Wisconsin urges lawmakers to keep criminals from using crypto ATMs to steal. Strong laws will protect the life savings of vulnerable Wisconsinites being groomed by criminals.

Seventeen other states, including most of our neighbors in the Midwest, have already passed legislation, so we know how to stop these scams. We need laws that impose daily transaction limits on crypto kiosks and create a limit on kiosk user fees. Victims also need to be reimbursed for their losses, and operators of crypto kiosks must collect detailed transaction data to help law enforcement investigate the scam.

Wisconsinites should have peace of mind knowing their money is secure. No one should have to worry about being tricked into handing over their retirement funds to a criminal hiding behind a screen.

Make no mistake, these are sophisticated criminals who are trained and skilled at manipulating even the most vigilant individuals. Wisconsin needs lawmakers to protect our hard-earned savings and make it nearly impossible for criminals to steal in the local businesses we count on every day.

Raj Shukla is the AARP Wisconsin state director and can be reached at [email protected].