Kentucky House lawmakers have approved a bill which would strengthen consumer protections for cryptocurrency kiosks, sending it to the Senate for consideration.
As of 2024, there were more than 30,000 crypto kiosks nationwide, according to AARP.
Kathy Rice, a resident of Fayette County, lost $19,000 to tech support scams involving crypto. She said she never thought she would be the type of person to get scammed. She believes state leaders need to do more to protect residents.
"I thought I knew what I was doing. I thought that I was educated enough that I would not be scammed," Rice explained. "I was horrified. I lost sleep. I was stressed to the max."
Cryptocurrency kiosks look like traditional ATMs and allow users to buy or sell legitimate cryptocurrency but criminals are increasingly exploiting them to defraud consumers. According to Coin ATM Radar, some 470 crypto kiosks are in operation today across Kentucky, located in gas stations, supermarkets, vape shops and liquor stores.
House Bill 380 requires kiosk operators to be licensed, mandates user ID verification and sets daily transaction limits.
Gary Adkins, volunteer state president of AARP Kentucky, said crypto kiosks are currently unregulated in the Commonwealth and there is no limit on how much money a person can put into a kiosk or how frequently they can be used. He added older adults sometimes lose their entire savings.
"Especially for those over the age of 60, to have common sense protection from the scammers," Adkins urged. "The point of transfer is the best place to deter potential victims from becoming actual victims."
FBI data show Kentucky residents reported 132 crypto ATM fraud complaints totaling more than $1 million in losses. According to the report, the average loss for consumers aged 60 and older is around $40,000.