Last year, I started noticing cryptocurrency ATMs popping up in gas stations and corner stores across New Hampshire. These are machines that convert cash into digital currency and send it to a crypto wallet in seconds. What I didn’t realize at the time was that these machines have become a goldmine for criminals who exploit them to scam people out of their life savings. According to the Federal Trade Commission, fraud losses involving cryptocurrency ATMs jumped from about $12 million in 2020 to $114 million in 2023 — nearly a tenfold increase.
Here’s how it works: A scammer calls or emails pretending to be from the IRS, law enforcement, some other trusted institution, or even a loved one in trouble. They create a sense of urgency — such as, “Pay now or you’ll be arrested!” — and then instruct the victim to deposit cash into a crypto ATM. Once the money is converted into cryptocurrency and sent to the scammer’s wallet, it’s nearly impossible to trace or recover. Victims often lose thousands of dollars in minutes.
Crypto ATMs are everywhere, more than 30,000 nationwide, and scammers know they’re largely unregulated and fast. Unlike banks, there’s no fraud department to call and no way to reverse a transaction. Once the money is gone, it’s gone.
AARP works every day to educate people about scams and how to protect themselves and their loved ones. Through tools like the AARP Fraud Watch Network, along with public events and disseminating information, we do everything we can to help people spot warning signs before they become victims. But even with these efforts, it’s impossible to reach everyone — and scammers know how to exploit any gaps they can find.
The good news is that we’re not starting from scratch. Across the country, 24 states have already put commonsense protections in place to help keep consumers safe. These measures show that there are practical solutions that work, and New Hampshire can adopt them too.
Most crypto ATMs allow users to deposit thousands of dollars at once. Local police and the New Hampshire Department of Justice have already seen examples of New Hampshire residents losing tens of thousands of dollars in a single transaction, exactly the kind of high-value payout scammers are looking for. Scammers want fast access to big money. If they can only extract a small amount per day, many will move on to states with weaker protections.
These caps reduce both the harm to victims and the financial incentive for criminals.
Right now, when someone is tricked into using a crypto ATM, they have virtually no recourse. Once cash is converted to cryptocurrency, it is almost never recovered. Victims, many acting under fear or pressure, lose everything. Refund processes are essential. Maine, Vermont, Connecticut and Rhode Island already require refunds for fraudulent transactions. Offering victims a path to recovery isn’t just reasonable, it’s common sense.
If New Hampshire does not establish consumer protections, we risk becoming a prime target for scammers. Criminals go where protections are weakest. With Maine, Vermont, Connecticut and Rhode Island having already taken action, and 20 additional states nationwide implementing safeguards, New Hampshire risks becoming one of the easiest place for scammers to operate. Without similar protections, we could become a destination for fraud.
If you or someone you know has been targeted by a scam, call the AARP Fraud Watch Network Helpline at (877) 908- 3360. It’s free and confidential for everyone.
The best protection against scams is to follow a few rules. If anyone tells you to pay using a crypto ATM, gift cards or a wire transfer — whether they claim it’s to help a family member, fix a device, pay a fine, avoid a warrant or prevent a utility shutoff — STOP. No government agency, utility company or legitimate business will ever demand payment that way. Hang up, pause and never share personal information, account details, passwords or login credentials with anyone. Never give remote access to your phone or computer. If you think you may have been scammed, report it right away and contact a trusted family member, friend, caregiver or your local police for help.
Criminals look for the easiest path, but we don’t have to give them one. By supporting common sense protections and staying vigilant, we can shield our residents from becoming targets.
Patrick McDermott, from Hooksett, is a volunteer state president for AARP New Hampshire.