MADISON, WI – AARP Wisconsin today applauds state lawmakers for introducing bipartisan legislation that would increase consumer protections around cryptocurrency kiosks.
There are nearly 700 of these kiosks (also called crypto ATMs or virtual currency kiosks) in convenience stores, gas stations, grocery stores, and other locations across Wisconsin. Criminals are increasingly using these machines to perpetrate scams by manipulating victims into withdrawing large sums of cash – sometimes their entire life savings – from their banks and depositing it into a cryptocurrency kiosk under the guise of protecting their assets or paying fines. Recovering the stolen funds is rare. Investigations conducted by bipartisan attorneys general have shown that more than nine in 10 uses of these crypto ATMs are fraudulent.
The bill introduced this week by Representatives Pat Snyder (R-Weston) and Steve Doyle (D-Onalaksa) and Senator Jesse James (R-Thorp) would address crypto kiosk fraud and protect Wisconsinites’ pocketbooks by:
· Setting daily transaction limits at $500
· Capping fees at the greater of $5.00 or 3% of the transaction amount
· Requiring cryptocurrency kiosk operators to provide users with receipts
· Implementing consumer identification measures for every transaction
· Allowing scam victims to receive refunds
“Make no mistake, these are sophisticated criminals who are trained and skilled at manipulating even the most vigilant individuals,” said AARP Wisconsin State Director Raj Shukla. “That’s why we’re excited to see lawmakers introduce legislation that will make it harder for criminals to steal Wisconsinites’ life savings. Seventeen other states–including most of our neighbors–already have kiosk consumer protection laws, and if Wisconsin doesn’t act now, criminals will continue to exploit the machines in Wisconsin.”
Shukla is encouraging all state residents to contact their state legislators as soon as possible to stress the importance of passing this bill into law. Anyone who is unsure which lawmakers represent them can visit maps.legis.wisconsin.gov.
