As advocates educate and warn the public about fraudulent schemes during Fraud Prevention Month, Virginia has enacted a new law to regulate a common tool used by fraudsters.

House Bill 489 puts multiple regulations in place on crypto kiosks. Crypto kiosks often look like ATMs but are used to buy cryptocurrency or put it into digital wallets. Because they are largely unregulated and transactions can be difficult to track, the kiosks often serve as a tool for scammers to steal money from unsuspecting victims.

Jared Calfee, state advocacy director for AARP Virginia, said crypto kiosks are a unique and effective avenue for scammers to take hundreds of thousands of dollars from victims.

"What we have seen, not just in Virginia but throughout the entire country, is that these kiosks have become major targets for scammers to take advantage of people," Calfee explained. "Because it’s a great way to separate people from their money in a way that is very difficult to trace or to get returned to them."

In 2025, the FBI estimated losses to crypto kiosk scams to be more than $300 million, with more than 12,000 complaints filed with its internet crime division.

The new law sets multiple regulations on the previously unregulated kiosks, including caps on how much money a user can put in. New users can contribute $2,000 each day with a maximum of $10,000 per month. Kiosks are also required to hold any transaction for 48 hours. Calfee argued the regulations provide strong protections for Virginia residents, who may be targeted in such scams.

"These daily and monthly limits and these mandatory holds are really strong protections to help people who might get scammed be able to limit what they lose," Calfee stressed. "Or get all their money back if they realize it’s a scam within that 48-hour period."

Any violation of the regulations could result in a $1,000 fine per offense. The law takes effect July 1.

Source: Public News Service