Hawaii Steps Up to Protect Kupuna from Rising Cryptocurrency Kiosk Scams

As cryptocurrency gains popularity, a new wave of scams targeting Hawaii’s elderly population, known as kūpuna, has emerged, prompting urgent calls for enhanced consumer protections and legislative action. Authorities and advocacy groups are uniting to raise awareness about sophisticated cryptocurrency kiosk fraud schemes that have resulted in significant financial losses for Hawaii’s senior residents.

Rising Cryptocurrency Scams Targeting Kūpuna

The Kaua‘i Police Department (KPD) recently issued a warning to the public, particularly kupuna, about a growing cryptocurrency scam often referred to as a “pig butchering” scam. In this scheme, scammers establish trust by posing as friendly contacts through social media, phone calls, or text messages, before convincing victims to invest in nonexistent cryptocurrency opportunities promising high returns. Once funds are transferred, the scammers vanish, leaving victims with substantial losses.

Family members and caregivers are urged to discuss warning signs and protective measures with their elders to guard against this emotional manipulation tactic. KPD encourages residents to report any suspicious calls or messages to their dispatch center at (808) 241-1711 to aid in swift intervention and prevention of further fraud[1].

Cryptocurrency Kiosks: Convenient Tools for Scams

Cryptocurrency ATMs, or kiosks, which resemble standard cash machines, are becoming common fixtures at gas stations, supermarkets, and convenience stores across Hawaii. While these kiosks offer easy access to buying and selling cryptocurrencies, criminals have exploited them as part of fraud schemes, often targeting older consumers unfamiliar with the technology.

In 2024 alone, the FBI reported nearly 11,000 complaints nationwide concerning cryptocurrency kiosk fraud, with reported losses totaling $247 million. Experts believe underreporting means actual figures are likely higher, underscoring the urgent need for consumer safeguards[2].

AARP Hawai‘i Advocates for Legislative Protections

AARP Hawai‘i is championing legislation aimed at curbing cryptocurrency kiosk scams and enhancing protections for kupuna and all consumers. The proposed law seeks to implement:

• A daily transaction limit of $2,000 per cryptocurrency ATM use
• Onscreen fraud warnings to alert users of potential risks
• Clear, upfront disclosure of fees associated with transactions
• Receipts detailing transaction information for transparency

This legislation aligns with similar laws enacted or proposed in 18 other states. Keali‘i Lopez, AARP Hawai‘i’s state director, emphasizes that imposing a transaction limit is common sense and a practical step to limit fraud losses when using cryptocurrency ATMs[2].

Educational and Support Resources from Hawaii Authorities

Beyond legislation, the Hawaii Department of Commerce and Consumer Affairs (DCCA) offers extensive resources to assist kupuna and their caregivers. These include free educational materials, guest speaker programs, and avenues to report suspected investment fraud. The DCCA urges kupuna to verify the registration and background of any individual selling investments and offers a variety of consumer protection resources tailored to senior citizens to combat scams effectively[6].

Community and Family Vigilance Crucial to Protection

Community awareness and family involvement play a crucial role in protecting kupuna from these scams. The discreet, relationship-oriented approach of scammers can emotionally manipulate seniors, making vigilance vital. Families are encouraged to hold conversations about the risks of cryptocurrency scams and to monitor for unusual financial activity.

Looking Forward

With the Hawai‘i legislative session commencing in January 2026, AARP Hawai‘i and allied stakeholders are actively working on drafting and promoting bills for better regulation of cryptocurrency kiosks. Meanwhile, police, consumer advocates, and senior services continue to disseminate prevention tips and support to safeguard Hawaii’s kupuna from the growing threat of cryptocurrency fraud.

Key Tips to Avoid Cryptocurrency Scams:

• Be suspicious of unsolicited contacts urging cryptocurrency investments.
• Verify investment offers independently before sending money.
• Use cryptocurrency kiosks cautiously and understand fees and limits.
• Report suspicious activity immediately to local authorities.

Protecting Hawaii’s kupuna from financial exploitation requires coordinated efforts involving education, legislation, and community support to ensure the security and well-being of seniors in the digital era.