Last year, I started noticing crypto ATMs being installed at gas stations and corner stores across New Hampshire. These are machines that convert cash into digital currency and send it to your cryptocurrency wallet in seconds. What I didn’t realize at the time was that these machines had become a treasure trove for criminals who exploited them to scam people out of their savings. According to the US Federal Trade Commission, fraud losses related to virtual currency ATMs have soared from about $12 million in 2020 to $114 million in 2023, an almost 10-fold increase.
Here’s how it works: Scammers will call or email you pretending to be the IRS, law enforcement, other trusted agencies, or a loved one in need. It creates a sense of urgency: “If you don’t pay now, you’ll be arrested!” — and instructs the victim to deposit cash into a virtual currency ATM. Once the money is converted to cryptocurrency and sent to the scammer’s wallet, it is nearly impossible to track or recover. Victims often lose thousands of dollars in minutes.
Cryptocurrency ATMs are ubiquitous, with over 30,000 locations across the country, and scammers know they are largely unregulated and fast. Unlike banks, there is no need to call the fraud department and there is no way to reverse the transaction. Once the money is gone, it’s over.
AARP works every day to educate people about scams and how to protect themselves and their loved ones. Through tools like the AARP Fraud Watch Network, public events and the dissemination of information, we’re committed to helping people recognize red flags before they become victims. However, even with these efforts, it is impossible to reach everyone. And scammers know how to get caught.
The good news is we’re not starting from scratch. Nationwide, 24 states have already adopted common sense safeguards to keep consumers safe. These measures demonstrate that effective practical solutions exist and can be adopted in New Hampshire.
Most cryptocurrency ATMs allow users to deposit thousands of dollars at a time. Local police and the New Hampshire Department of Justice have already seen cases of New Hampshire residents losing tens of thousands of dollars in a single transaction, which is exactly the kind of thing high-value payment scammers are looking for. Scammers want quick access to large sums of money. If they can extract only a small amount a day, many will move to states with less protection.
These caps reduce both harm to victims and financial incentives to criminals.
Currently, if someone is tricked into using a cryptocurrency ATM, they have virtually no recourse. Once cash is converted to virtual currency, it is rarely recovered. Many victims act under fear or pressure and lose everything. Refund procedure is required. Maine, Vermont, Connecticut and Rhode Island already require refunds for fraudulent transactions. Providing victims with a path to recovery is not only reasonable, it is common sense.
If New Hampshire doesn’t establish consumer protections, it risks becoming a prime target for scammers. Criminals go where protection is weakest. With Maine, Vermont, Connecticut, and Rhode Island already taking action, and an additional 20 states nationwide implementing safeguards, New Hampshire risks becoming one of the top places for scammers to operate. Without similar protection, you could become a target for fraud.
If you or someone you know has been the target of a scam, call the AARP Fraud Watch Network Helpline at (877) 908-3360. Anyone can use it for free and with strict confidentiality.
The best defense against fraud is to follow a few rules. If someone tells you to pay using a crypto ATM, gift card, or wire transfer, whether they claim to do so to help a family member, fix a device, pay a fine, avoid a warrant, or prevent a utility power outage, don’t do it. No government agency, utility company, or legitimate business will ask for such a payment. Hang up, pause, and never share your personal information, account details, passwords, or login credentials with anyone. Never allow remote access to your phone or computer. If you think you may have been scammed, report it immediately and seek help from a trusted family member, friend, caregiver, or local law enforcement.
Criminals look for the easiest path, and we don’t need to give them that path. By supporting common sense protections and remaining vigilant, we can prevent our residents from becoming targets.
Patrick McDermott, a Hooksett native, is the volunteer state president of AARP New Hampshire.
