Protecting Hawaii’s kupuna from cryptocurrency kiosk scams
HONOLULU (HawaiiNewsNow) – Scammers have a new way to cash in on people’s fears — a cryptocurrency kiosk.
AARP estimates there are more than 100 crypto kiosks across the state at convenience stores and malls — and growing.
Unlike a traditional bank ATM, the kiosk allows people to convert cash into digital currency which can then be transferred to another person’s digital wallet easily and quickly.
Police warn it’s become an ideal vehicle for scammers to defraud you of your hard earned money.
It often starts with a phone call from someone pretending to be from the police, a utility or government agency who directs the victim to deposit cash into a crypto kiosk.
The scammer will then guide the victim through the process of using the kiosk until a transaction is done or threatens to arrest the victim if money is not deposited immediately.
“What I’m worried about is the kupuna who goes over, doesn’t know what Bitcoin even is and is feeding tens of thousands of dollars of cash into an ATM to buy cryptocurrency to put in someone else’s wallet,” said state Rep. Scot Matayoshi, chair of the House Committee on Consumer Protection & Commerce.
The FBI says reported scams involving the machines doubled last year from the previous year, totaling almost $250 million in losses.
The state received 68 complaints amounting to nearly $1 million in losses. Advocates say that number is likely underreported.
It’s become so concerning that lawmakers and consumer advocates discussed it as part of an informational hearing at the State Capitol on Wednesday.
“It’s hard to get people to come forward because they’re victims and they’re shame and the point there is exactly that they’ve been exploited,” Kealii Lopez, state director for AARP Hawaii, said in testimony.
Some want stricter regulations – even a ban on the ability to buy crypto through the kiosks completely.
“The few people who have an interest in turning cash directly into crypto just doesn’t outweigh the number of people getting scammed at those ATMs,” Matayoshi said.
Law enforcement officials say there are several red flags to look out for, including a person who refuses to let you hang up or threatens you with arrest if you don’t make a payment immediately.
Police urge victims to call 911 as soon as they know they’ve been scammed, though prosecution is often impossible because criminals are outside jurisdiction or use tech and AI to make them untraceable.
Kiosk operators like CoinFlip and Bitcoin Depot earn as much as 20% commission on transactions and pay store owners a monthly rent to set them up.
They say the machines are not to blame.
“Less than 3% of all money that was lost in the cryptocurrency scams was at a cryptocurrency kiosk. Over 97% was elsewhere on an online portal of some sort,” said Jon Turke, director of government affairs for CoinFlip.
There are also safeguards in place, including scam warnings, alerts, ID verification for large deposits, and a 24/7 hotline.
Two store owners HNN spoke to say they only see kupuna using the kiosks.
“It’s a red flag for me because they didn’t seem like they know what they’re doing in the first place. Yeah, they seem like following somebody’s instructions and trying to follow that instructions, and they have a hard time doing it,” said Kimi Yang, owner of Friendly Store in Kalihi.
She said she’s had a Bitcoin Depot kiosk for about a year, and is paid $250 a month to house it in her store.
She says she asks elderly kiosk users if they know who they are sending money to.
If you get a call pressuring you to deposit money into a crypto kiosk, hang up and call the company that claimed to call you. Banks, government agencies and other legit businesses never ask for your personal financial information, payment over the phone or crypto payments.
A recent AARP poll shows 9 in 10 people have been exposed to a holiday scam, whether it’s a text, email or phone call.
To help, AARP is hosting a Town Hall to discuss holiday fraud on December 13th at 9 a.m. People can call toll-free 1-866-654-9490 to participate or they can watch on the AARP Hawaii’s Facebook page and ask questions in the comments section.
Copyright 2025 Hawaii News Now. All rights reserved.