(Des Moines) — A new rule passed by the Iowa Legislature is intended to protect seniors from fraud at unregulated cryptocurrency kiosks.
The measure is part of a broader effort to address financial scams often targeting older Iowans. The law requires crypto operators to post written notices warning consumers about the financial risks of using the machines, which resemble an ATM. The measure also limits daily kiosk transactions to $1,000.
Paige Yontz, state advocacy manager for AARP Iowa, said the fraud numbers in Iowa are high.
“In 2024 alone, over $20 million of fraudulent activity took place using cryptocurrency kiosks as a method of getting those dollars,” Yontz reported.
Yontz noted scammers often target seniors in cryptocurrency scams because the technology is still so new.
The kiosks allow users to use cash or a debit card to buy or send cryptocurrency like Bitcoin in just a few seconds. Yontz pointed out seniors are easy to scam because the technology is still so new and largely unregulated.
“It’s still kind of the Wild West of currency,” Yontz explained. “This level of protection is going to be really, really important for older Iowans in the sense that they can feel more comfortable.”
Scammers typically convince their victims they can protect their savings by converting it to Bitcoin but instead the money is actually going into the scammer’s account. The Iowa law is the latest in a series of measures across the country designed to protect consumers from crypto kiosk fraud.