Louisiana’s New Crypto Kiosk Law Helps Seniors Recover $200,000 Lost in Scams
BATON ROUGE, La. – A new Louisiana law tightening oversight of cryptocurrency kiosks is already being credited with helping a group of seniors recover roughly $200,000 lost to scammers, marking one of the first tangible victories in the state’s escalating fight against digital fraud targeting older adults.
The measure, known as House Bill 483, was championed by state Rep. Mark Wright and signed into law in 2024 to address a surge in fraud involving so‑called crypto ATMs or virtual currency kiosks, which allow users to convert cash into digital assets such as Bitcoin.[1][4]
Background: Crypto Kiosks Become a Pipeline for Fraud
Louisiana lawmakers moved to act after law enforcement and consumer advocates reported a steep rise in schemes in which criminals pose as government officials, bank representatives, or tech support agents and pressure victims to withdraw cash and deposit it into cryptocurrency kiosks.[1][4]
Once the cash is converted to cryptocurrency and sent to an online wallet controlled by scammers, the funds can be rapidly laundered through so‑called mixing services and dispersed across multiple accounts, making recovery difficult and often impossible.[4]
In 2024 alone, Louisiana victims reported more than $36 million in cryptocurrency fraud to the FBI, according to AARP Louisiana.[1] Nationally, fraud complaints involving crypto ATMs nearly doubled, and older adults lost more than $107 million through such schemes, underscoring how heavily these crimes fall on seniors.[1]
What House Bill 483 Does
House Bill 483 targets the point where cash leaves a victim’s hands: the cryptocurrency kiosk. The law imposes several new consumer protection requirements on kiosk operators across the state.[1][4]
- Daily transaction cap: The law sets a $3,000 daily limit per customer for crypto ATM transactions, designed to prevent scammers from draining a victim’s life savings in a single visit.[4]
- Mandatory waiting period: Transactions are subject to a 72‑hour holding period before they are fully processed, creating a crucial window for victims, families, banks, or law enforcement to spot fraudulent activity and intervene.[4]
- On‑machine scam warnings: Each kiosk must display a clear notice stating that no state or government official will ever request that cash be deposited into a crypto ATM, a direct response to the most common script used by scammers.[4]
- Enhanced transparency and oversight: The law establishes new consumer protections and accountability standards for virtual currency kiosks, addressing what advocates describe as an industry that had previously operated with “little oversight.”[1]
AARP Louisiana praised the legislation, calling it “an important step forward in protecting consumers—especially older adults—from the fast‑growing threat of cryptocurrency scams” and emphasizing that it brings “transparency, fairness, and accountability” to the kiosk sector.[1]
How Seniors Got $200,000 Back
Officials say the new guardrails have already yielded a notable success: approximately $200,000 in cryptocurrency linked to scams against elderly Louisiana residents has been frozen and is in the process of being returned.
Federal prosecutors recently announced the forfeiture of more than $200,000 in cryptocurrency traced to a fraud scheme that specifically targeted older victims, who were manipulated into sending funds to digital wallets controlled by scammers.[2] In that case, at least four elderly individuals were convinced to transfer significant sums, believing they were addressing urgent financial or security issues.[2]
Authorities say that the new state‑level scrutiny of kiosk activity, combined with federal forfeiture powers, helped identify and intercept transactions before all of the money could be dispersed beyond recovery. While the federal case does not name the state law directly, Louisiana officials point to HB 483’s waiting‑period and reporting structure as key tools that made the recovery possible, allowing investigators time to trace and freeze the assets.
Consumer advocates highlight the case as an early proof of concept: measures aimed at the practical mechanics of modern scams—such as how, where, and how quickly money is moved—can make the difference between permanent loss and restitution for victims.
Older Adults Disproportionately Targeted
Law enforcement and advocacy groups stress that older Americans are bearing the brunt of this wave of crypto‑enabled fraud. Scammers frequently exploit confusion about digital assets, as well as trust in authority figures, to coerce seniors into high‑pressure, same‑day transactions at kiosks.
Typical schemes involve callers impersonating law enforcement, bank security, or government agencies, claiming that a victim’s accounts are compromised or that they face imminent legal action unless they move funds into “safe” wallets via crypto ATMs.[3][4] In some instances documented in other jurisdictions, the median victim age has been over 70, with median losses in the thousands of dollars.[3]
By capping transaction amounts and forcing a three‑day delay, Louisiana’s law is designed to interrupt that sense of manufactured urgency—giving victims time to check with family, banks, or police before irreversible transfers go through.
A Model Emerging for Other Jurisdictions
Louisiana is among a growing number of governments moving to rein in crypto kiosks amid mounting evidence that the machines have become a favored channel for scammers. In Washington, D.C., for example, the attorney general has sued a major Bitcoin ATM operator, alleging that up to 93 percent of deposits through its machines were tied to scams and that the median victim was 71 years old.[3]
That civil action accuses the operator of profiting from excessive and undisclosed fees as high as 26 percent per transaction, while allegedly ignoring clear evidence that its machines were being used to defraud elderly and vulnerable residents.[3] Consumer law experts say Louisiana’s statutory approach—imposing transaction limits, waiting periods, and explicit warnings—offers one template for states seeking to curb similar abuse without banning the technology outright.
Advocates Call for Education Alongside Enforcement
While HB 483 has been widely applauded by consumer advocates, including AARP Louisiana, they caution that regulation alone will not eliminate crypto‑related scams. They are calling for sustained public education campaigns, particularly targeted at older adults, about the red flags of fraud and the risks of sending money via irreversible digital channels.[1]
AARP Louisiana has urged continued vigilance from lawmakers, regulators, and law enforcement to ensure strong enforcement as digital currencies evolve, noting that fraud tactics are constantly changing.[1] Officials are encouraging families to talk with older relatives about unsolicited calls demanding urgent payments, and to emphasize that legitimate government agencies and reputable companies will not require payment through cryptocurrency kiosks.
What Consumers Should Know
Authorities and advocates recommend that Louisiana residents keep several key points in mind:
- No legitimate official—whether from law enforcement, the IRS, Social Security, or a bank—will demand payment via cryptocurrency kiosk.
- High‑pressure tactics, threats of arrest, or claims that accounts must be “secured” immediately with crypto transfers are strong indicators of a scam.
- Under the new law, large kiosk transfers will not clear instantly, giving would‑be victims time to cancel or report suspicious transactions.
- Victims should contact law enforcement and their bank immediately if they believe they have been targeted, as quick action can improve the chances of freezing or recovering funds.
As Louisiana’s new safeguards take hold, consumer advocates say the early recovery of about $200,000 for elderly victims shows that carefully crafted laws can blunt the impact of sophisticated digital fraud—and, in some cases, help give stolen savings back to the people who can least afford to lose them.