South Dakota is the latest state fighting back against scammers who use cryptocurrency kiosks to steal money from people unaware they’re being targeted. A-T-Ms for virtual currency like Bitcoin are popping up all over the country, but consumer advocates say they’re largely unregulated.
Erik Nelson with A-A-R-P South Dakota says cryptocurrency kiosks still allow for legitimate transactions, but unfortunately, they’ve become a frequent tool for criminals.
“Overall, what we’ve learned is that right now, the vast majority of the transactions taking place on crypto ATMs are being used for scams and frauds.”
For example, an investigation in Iowa found that 98% of transactions from one major operator were scams. In one instance, A-A-R-P says a 79-year-old woman who searched online for a customer service phone number to get assistance with one of her video streaming accounts, instead got in touch with impersonators. Those scammers persuaded her to send more than $250-thousand through a cryptocurrency kiosk.
However, Nelson says there are some hopeful signs that the public is becoming more aware of these types of scams.
“In Sioux Falls last year, there was a banker that was not working, [who] was just buying something at a gas station, [and] was able to stop one of these frauds from taking place because they recognized what was happening.”
The South Dakota Attorney General’s Office says nearly $14 million in cryptocurrency-related losses were reported in the state in 2024.
Story courtesy of the Greater Dakota News Service.
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