San Diego moves to require warning signs on cryptocurrency ATMs to prevent scams

San Diego could become the first California city to require warning signs on or near cryptocurrency ATMs to prevent scams.

The proposal, from San Diego City Council President Joe LaCava, is intended to combat scams that allegedly focus on the machines and primarily target senior citizens.

In the schemes, the scammers persuade victims to deposit cash into cryptocurrency ATMs located in grocery stores, convenience stores and smoke shops. Once the money is transferred, authorities say it is difficult or impossible to recover.

LaCava, at a Wednesday news conference for his proposed policy change, said warning signs would interrupt the scam before it’s too late.

“Stopping scams before they take place is critical,” he said. “In many cases, funds lost to these criminal activities are difficult to recover and can prevent individuals from putting food on the table, making rent and purchasing needed medication.”

Cryptocurrency ATMs are common across San Diego and San Diego County. Tracking how many of them is difficult.

State data cited by LaCava show 111 cryptocurrency ATMs operating at 75 locations across the city. Nearly half of those machines, 55, are located at 24 Safeway and Albertsons stores, which share the same parent company.