Arizona Attorney General Kris Mayes has issued a high-level warning to state residents following a massive surge in cryptocurrency ATM fraud. According to the AG’s office, Arizonans lost a staggering $177 million to these scams in 2024 alone.

The warning highlights a growing trend where fraudsters exploit the physical accessibility of crypto kiosks to bypass traditional banking safeguards and steal life savings from vulnerable citizens.

Key Details from the AG Alert:

• Explosive Financial Loss: The $177 million lost in 2024 reflects a broader national trend; the FBI recently reported a 99% increase in crypto kiosk fraud complaints across the U.S.

• Tactics of Deception: Scammers typically pose as government officials, bank representatives, or law enforcement. They pressure victims into withdrawing cash and depositing it into a specific crypto ATM using a QR code provided by the criminal.

• New Victim Support Tools: In response to the crisis, the AG’s office has launched a dedicated fraud complaint form. This tool allows victims to report losses within 30 days, which is crucial for potential recovery efforts under new state regulations.

• Aggressive Prevention: The state has partnered with local law enforcement, including the Yavapai County Sheriff’s Office, to place physical "STOP" signs on Bitcoin ATMs to warn users mid-transaction.

• Legislative Safeguards: Under Arizona’s Crypto Kiosk License Fraud Prevention law, transaction limits are now capped at $2,000 for new users. Additionally, operators may be held liable for refunds if a fraud report is filed promptly.

Attorney General Mayes emphasized that "if you are being directed to use a crypto ATM by someone you don't know, there is a very high chance you are being scammed."