HONOLULU (HawaiiNewsNow) - A new state law aimed to stop scammers from exploiting cryptocurrency ATMs or kiosks to defraud victims takes effect on Oct. 1.
Consumers will no longer be able to deposit cash into the kiosks to buy cryptocurrency. Consumers with existing accounts can still convert their crypto into cash and make withdrawals.
AARP and other consumer advocates point to FBI data showing $3.85 million in losses through fraud involving cryptocurrency kiosks in 2025 -- nearly four times the amount reported the previous year.
As a result, state lawmakers passed the new consumer protection law last session, making Hawaii the first state to ban kiosks that accept deposits. A few states have completely banned the machines, while others have imposed transaction limits, mandated refunds for fraud, and passed other consumer safeguards.
Until Hawaii’s law takes effect on Oct. 1, the state urges the public to stay vigilant and look out for crypto kiosk scams.
Hawaii Banking Commissioner Dwight Young says the machines have become a favorite tool for criminals because they’re anonymous and hard to trace.
“It usually starts with some unsolicited phone call, text message or email,” Young said. “They’ll say your bank account is compromised, or you missed jury duty and then they’ll get you to withdraw cash from your bank and put it into these ATMs.”
Scammers will often stay on the phone with victims the entire time, from the bank withdrawal to the moment the cash goes into the machine. And once it’s in, it’s gone.
