NC lawmakers unanimously crack down on crypto ATMs

CHARLOTTE — You’ll find them in gas stations, tobacco stores, and convenience stores: ATMs that convert cash into cryptocurrency. North Carolina lawmakers are cracking down on the machines. The AARP warns they are ripe for fraud.

The clerk of an Uptown convenience store told Channel 9 that every week people come into his store on the phone with someone asking for their cash to be converted into crypto. He says he warns them they are likely being scammed.

The AARP says these scams cost people more than $389 million last year.

“Unfortunately, what we have seen over and over again across the country is that scammers have found out about these things and realized they can take real advantage by having folks feed cash into these things,” Chris Brandenburg with AARP said. “Once it is converted into that crypto, recovery is almost impossible.”

The Virtual Currency Kiosk Protection Act is sitting on Governor Josh Stein’s desk. Lawmakers in the House and Senate unanimously passed the measure.

It puts in place daily limits for deposits: $2,000 for new customers and $5,000 for returning.

It requires the kiosks to provide refunds to customers if they report the transaction as fraud within 30 days if the commissioner of banks determines this was fraud and the depositor was a new customer.

It also puts in place a 12% transaction fee and requires a warning notice telling people that if someone sent them to the kiosk, it is likely fraud.

“It’s always just an urgent push for money,” Brandenburg said. “We’re seeing it over and over again.”

While North Carolina is regulating these machines, Tennessee is banning them. The AARP hopes these new regulations help prevent people from giving away their life savings.

Last year, Attorney General Jeff Jackson launched a statewide campaign to warn people about fraud at crypto ATMs. He is asking clerks to look for warning signs that someone is about to fall for a scam.

Here’s what clerks should look out for:

• An older adult is using the crypto ATM while someone on the phone is talking to them.
• An older adult tells you they need to withdraw cash immediately from their bank account to send to someone who called them.
• Someone says a government official (ex., law enforcement) told them to pay a fine with crypto. Remind them that the government NEVER accepts crypto as payment.
• Anyone who is acting stressed, scared, or emotional may be receiving threats.

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