TL;DR
- Arizona AG Kris Mayes issued a statewide alert after $177M in 2024 crypto ATM scam losses and launched a complaint form.
- Scammers impersonate banks or police, push victims to 600 kiosks; Scottsdale police reported $5M lost, and STOP signs are going up.
- State law caps daily transactions at $2,000 for new users and $10,500 for existing, mandates refunds; FBI data and a D.C. lawsuit fuel federal rules.
Arizona Attorney General Kris Mayes issued a statewide alert warning that cryptocurrency ATM scams are surging after residents lost more than $177 million in 2024. Her office also launched a new fraud complaint form so victims can report losses within 30 days of being scammed, aiming to tighten the feedback loop between consumers and enforcement. The message is that speed of reporting is now a core control, not an afterthought. The alert says scammers increasingly target consumers, especially older adults, by steering them to deposit cash at crypto kiosks, where recovery is often difficult once funds move. They warn: never use kiosks for unknown recipients.
State response and broader enforcement
Investigators say the playbook typically starts with unsolicited calls or texts that impersonate banks, police, or family members, then pressure victims to visit one of roughly 600 crypto ATMs across the state. The operational pattern is urgency plus authority, converted into a cash deposit before questions can surface. Once cash is fed into the machine and converted, funds are described as nearly impossible to recover. Scottsdale police have already reported $5 million in losses this year. The attorney general’s office also partnered with Yavapai County Sheriff David Rhodes to place “STOP” signs on machines.
Arizona is pairing messaging with hard guardrails through its Crypto Kiosk License Fraud Prevention law, effective since September 2025. It caps daily kiosk transactions at $2,000 for new customers and $10,500 for existing users, aiming to limit how fast scammers can drain savings. The policy objective is to reduce the blast radius while creating clearer accountability for operators. The framework also requires kiosks to issue receipts and disclosure warnings, and it mandates full refunds to fraud victims who file a police report within 30 days, turning remediation into a defined workflow for consumers.
The statewide alert arrives as enforcement escalates nationally. The FBI reported a 99% surge in crypto ATM complaints and more than $246 million in losses in 2024. The wider takeaway is that regulators are standardizing controls like warnings, caps, and refunds as baseline consumer protection. In Washington, D.C., Attorney General Brian Schwalb sued Athena Bitcoin, alleging 93% of deposits were tied to scams, with median victim age 71 and fees up to 26%. Senator Dick Durbin’s Crypto ATM Fraud Prevention Act proposes registration, warnings, caps, and refunds nationwide.
