Arizona lawmakers are considering a bill to prevent cryptocurrency scams and regulate what are known as "crypto kiosks."
Brendon Blake, AARP Arizona's director of advocacy, said these kiosks, often found inside businesses or malls, allow folks to convert cash into Bitcoin or other cryptocurrencies. Blake said the scams often start over the phone, when scammers pressure people to get cash and then deposit the money at a kiosk.
Blake said crypto's decentralized nature makes it difficult to track where the deposit ends up.
"The majority of experts believe the money is being sent overseas to large criminal enterprises or just to scammers that are overseas," he said. "We are seeing people lose tons of money. Last year, we saw $189 million be moved via cryptocurrency ATMs that were as a result of scams."
Blake said House Bill 2387 focuses on prevention, restitution and security. He added that the majority of victims are people older than 60 - likely because the demographic has easier access to larger amounts of savings, and scammers exploit a lack of awareness of how cryptocurrency works.
For those who think they've fallen victim to a crypto scam, he said, it's vital to report it to local authorities. He added that sometimes, refunds are possible. Blake added the state is fighting for a daily limit on how much money can be deposited into a "crypto kiosk." The bill also aims to make warning signs at kiosks mandatory.
"We believe that these machines and these companies have a responsibility to do fraud prevention," he said, "and so, we do have warnings and disclosures in the bill that they have to display."
Blake said the bill has had little opposition and that some in the crypto industry are supporting it. He called HB 2387 the "opening attempt" at trying to protect Arizonans from crypto scams.
"And if we've got to come back and figure out more, 'Hey this didn't exactly work, we've got to tweak this,' AARP is endlessly committed to making sure that we got something right," he said.
Blake said the bill still needs a Senate floor vote before heading back to the House. If it passes, it would head to Gov. Katie Hobbs' desk.