New Hampshire Moves to Protect Residents from Rising Crypto ATM Scams

Victims of cryptocurrency ATM scams in New Hampshire may soon have a pathway to reimbursement, thanks to a bill recently passed by the Senate. This bipartisan legislation addresses a growing problem that cost Granite Staters a staggering $22 million in 2024 alone. The bill aims to curb the increasing prevalence of these scams, particularly targeting vulnerable populations.

How Crypto ATM Scams Work

These scams typically follow a familiar pattern of financial fraud, but with a digital twist. Scammers convince victims to deposit cash into a crypto ATM, which then converts the funds into cryptocurrency. Once the transaction is complete, tracing and recovering the money becomes exceptionally difficult, leaving victims with little recourse.

Hampton’s police chief reported that over $2.6 million was lost to scammers within his town in 2024, with the average victim age being 66. This highlights the particularly devastating impact these scams have on seniors.

Key Provisions of the Proposed Legislation

Senator Virginia Birdsell, a Hampstead Republican, passionately advocated for the bill’s passage, stating, “This is becoming a scourge on our elderly.” The proposed legislation includes several key provisions designed to protect consumers:

• 48-Hour Hold on First Deposits: Crypto ATM operators would be required to hold a person’s initial deposit for 48 hours, providing a window for cancellation if a scam is suspected.
• Daily Deposit Limit: Operators would be restricted from accepting more than $2,000 per person per day.
• Refunds for Reported Fraud: Victims who report the scam to both the ATM operator and authorities within 14 days would be eligible for a full refund.

National Trend and Legal Action

New Hampshire isn’t alone in addressing this issue. Nearly 25 other states have enacted similar laws, although many offer a longer timeframe – typically 90 days – for victims to file claims. Legal action is also being taken against crypto ATM operators. Massachusetts is currently suing Bitcoin Depot, alleging that its machines were used to facilitate criminal scams. Maine recently reached a $1.9 million settlement with Bitcoin Depot and is currently accepting claims from victims.

The rise of crypto ATMs has created a new avenue for fraudsters, exploiting the relative anonymity and irreversibility of cryptocurrency transactions. Understanding the risks associated with these machines is crucial for protecting your finances. For more information on cryptocurrency security, visit the Federal Trade Commission’s Cryptocurrency page.

What’s Next?

The New Hampshire bill now moves to the House for consideration. If passed, it will provide crucial protections for residents against the growing threat of crypto ATM scams.

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