Margaret Rock
For over 60 years, AARP has fought against state capitol seniors around the country to protect them from fraud and fraud. For eight years as a volunteer at the AARP fraud monitoring network helpline, I witnessed a dramatic escalation of the victimization of cryptocurrency.
The Colorado General Assembly is currently discussing bills on issues directly related to our work as fraud victim support specialists.
Senate Bill 079 is an important step for Colorado, with provisions in the bill working to protect victims and hold offenders accountable. Colorado law is moving forward with bipartisan sponsorships, led by Sens. Janice Rich, Dylan Roberts, Rick Taggart and Jamie Jackson.
They’ve been on the market for a while, but you might wonder exactly what a cryptocurrency ATM is.
Even if you’ve never used it, you could still be walking around a local grocery store, liquor store or convenience store. It is often located near a customer service desk and is designed to mimic a regular ATM. However, these machines are not FDICs that are insured or regulated like ATMs in the banking industry. Therefore, cryptocurrency ATMs provide a simple conduit for criminal use. These machines can be used for legal commercial transactions, but the FBI, AARP victim helplines, and law enforcement across our country are flooded with the epidemic of fraud committed through these machines. AARP is wary as these scams often target older Americans.
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One element of SB-079 that AARP closely monitors includes reducing the catastrophic effect of crime by establishing reasonable daily trading restrictions for both new and existing customers. These con artists are sharp, persuasive, detailed oriented, and instruct unsuspecting victims to deposit large amounts of cash. The fraud monitoring helpline has heard victims supply tens of thousands of dollars to cryptocurrency ATMs, get caught up in elaborate financial fraud, and criminals say they are pretending to be technical assistance, bank representatives or government officials. And in all frauds, the applied time pressure, the secrets and stress placed on the victim, often one deposit (only one) often wipes out life savings.
Daily trading restrictions are important consumer protections that limit losses and money laundering for victims using crypto kiosks. At the bill’s first committee hearing, representatives from the cryptocurrency industry said that normal daily transactions range between $600 and $1,200. With these amounts in mind, the SB-079 must pass with reasonable daily trading restrictions for all customers.
The 2023 FBI estimate was stolen from individuals over the age of 60. However, based on our experience with our fraud helpline, we believe this figure is highly underrated. Unfortunately, these figures may reveal only a small fraction of the actual loss. The real loss to our community is the savings that will be used for retirement, healthcare and increasingly costly daily expenses, burning off criminals who steal from hardworking older Americans.
AARP partners with law enforcement agencies, the cryptocurrency industry and elected officials across the country to take reasonable steps to support victims and hold offenders accountable. A strong SB-079 with reasonable daily trading restrictions for all cryptocurrency ATM users must pass at the Colorado General Assembly.
Margaret Rock is a semi-retired lawyer, mother and grandmother living in the Denver area.
