For more than 60 years, AARP has fought for older adults in state capitols around the country, to protect them from scams and fraud. As a volunteer on the AARP Fraud Watch Network Helpline for eight years now, I have witnessed the dramatic escalation of cryptocurrency victimization.

The Colorado General Assembly is currently debating a bill on an issue that relates directly to our work as fraud victim support specialists: how to mitigate scams of cryptocurrency ATM (often called virtual currency kiosks) fraud.

Senate Bill 079 is an important step for Colorado, with provisions of the bill working to protect victims and hold criminals accountable. Colorado’s legislation is advancing with bipartisan sponsorship, with Sen. Janice Rich, Sen. Dylan Roberts, Rep. Rick Taggart and Rep. Jamie Jackson leading this work.

Though they have been in the market for some time, you may be wondering what exactly is a cryptocurrency ATM?

Chances are, even if you have never used one, you have walked by one in your neighborhood grocery store, liquor store, or convenience store. They are often located near the customer service desk and are designed to imitate a regular ATM. However, these machines are not FDIC insured or regulated like bank industry ATMs. Therefore, the cryptocurrency ATMs provide an easy conduit for criminal use. Though these machines can be used for legitimate commerce, the FBI, AARP’s victim helpline and law enforcement across our nation have been inundated with an epidemic of fraud perpetrated through these machines. AARP is on high alert, as these scams often target older Americans.

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One component of SB-079 that AARP is closely watching involves mitigating the devastating effect of the crime by establishing reasonable daily transaction limits for both new and existing customers. These scammers are astute, convincing and detail-oriented, directing unsuspecting victims to deposit cash in large quantities. On the Fraud Watch Helpline, I have listened as victims recount feeding tens of thousands of dollars into a cryptocurrency ATM, entangled in an elaborate financial scam, with criminals posing as tech support, bank representatives or government officials. And in every scam, applied pressures of time, secrecy and stress placed on the victim often result in a single deposit — just one — wiping out an entirety of life savings.

Daily transaction limits are an important consumer protection that will limit victim losses and money laundering using virtual currency kiosks. In the bill’s first committee hearing, a representative of the cryptocurrency industry stated a normal daily transaction is in the range of $600 to $1,200. With those amounts in mind, SB-079 should be passed with reasonable daily transaction limits for all customers.

The FBI estimates in 2023 $3.4 billion was stolen from individuals over the age of 60 alone. But based on our fraud helpline experiences, we believe this figure is vastly underestimated. These numbers, unfortunately, may only reveal a fraction of actual losses, which is notoriously underreported because victims may feel ashamed or frightened. The true loss to our communities is savings that would have been used for retirement, health care, and increasingly costly daily expenses vanishes — and emboldens the criminals who steal from hardworking older Americans.

AARP is partnering with law enforcement, the cryptocurrency industry and elected officials across the nation to advance reasonable steps to support victims and hold offenders accountable. A strong SB-079 with reasonable daily transaction limits for all cryptocurrency ATM users should be passed by the Colorado General Assembly.

Margaret Locke is a semi-retired attorney, mom and grandmother who resides in the Denver area.