Crypto ATMs Are Fueling Scams in Oro Valley. Here’s What You Need to Know.

Written By Frank Barletta

I recently grabbed coffee at Stacks (shout out) with Brian Watson, a retired 28-year special agent with IRS Criminal Investigations. We were talking about scams affecting our community and ways to help.

One topic stood out immediately: crypto ATMs.

To be clear, crypto ATMs themselves are not scams. But they have become one of the most effective tools scammers use to scare people into sending money anonymously. That anonymity is the entire point.

Here’s how it usually works. Someone calls or texts claiming to be law enforcement, the IRS, Social Security, a bank, or even a grandchild in trouble. They create panic. They apply pressure. Then they give very specific instructions to go to a nearby crypto ATM and send money immediately.

Once that money is sent, it is gone. There is no bank reversal. No chargeback. No undo button.

Arizona is now taking this seriously. On September 26, 2025, the state’s Cryptocurrency Kiosk License Fraud Prevention law officially went into effect to protect consumers, especially seniors, from crypto ATM scams. The law was enacted through House Bill 2387, which amends Arizona’s money transmission statutes to add new requirements for crypto ATMs statewide. 

What the New Law Actually Does.

Under this law:

  • Daily transaction limits are set — new users are capped at around $2,000 per day and existing users at about $10,500. That helps reduce the amount a scammer can push someone to send in a panic. 

  • Warning messages must be shown clearly on the ATM screen, and customers have to acknowledge them before proceeding, so people don’t just act on autopilot. 

  • Transaction receipts are required — giving users a tangible record of who they sent money to, how much, and when. 

  • Refunds are required for fraud victims who report the scam within 30 days. That means if someone realizes they were duped and reports it quickly, the operator must refund the money, including fees. 

  • Operators must also implement anti-fraud policies and customer safeguards, like written fraud detection controls and compliance officers, under the new statute. 

These protections matter because Arizona previously had little oversight of crypto ATMs, which can be used as untraceable cash dumps once a scammer convinces someone to send funds. 

That said, no law can fully protect you from fear and urgency. That part is up to you.

Here is the simple rule everyone should remember.

If anyone asks you to go to a crypto ATM and send money, stop.

It does not matter if they claim to be the government. It does not matter if they say a family member is in danger. It does not matter how convincing or official they sound.

Ask yourself one question. Why are they asking for money in a way that is anonymous and irreversible?

Legitimate organizations do not operate this way. Ever.

If you find yourself in this situation, pause. Call the Oro Valley Police Department. Call a trusted friend or family member or call me! I am happy to help you slow down and think clearly.

Scammers rely on speed, fear, and silence. Your best defense is the opposite.

Think twice before you send money to anyone. That moment of pause can save your retirement, your peace of mind, and a lot of heartache.

Source for some information: https://www.azag.gov/press-release/attorney-general-mayes-announces-new-protections-against-bitcoin-atm-scams-going

Frank Barletta